SBI Interest Rates From Dec-15: Lending Rates Drop By 25 Bps, Amrit Vrishti & FD Rates Cut Too; EMIs To Fall?

The largest lender State Bank of India (SBI), has lowered its key interest rates from fixed deposits to benchmark lending rates. SBI, the largest PSU lender of India, has trimmed its benchmarks like MCLR, EBLR, and RLLR by 25 basis points, in line with RBI's repo rate cut by 25 bps in December. This is likely to make EMIs on home loans, personal loans, and auto loans, among other term loans, cheaper. However, another impact of the repo rate cut is also seen in SBI's deposit rates.

SBI has reduced fixed deposit rates on several tenures by 5 basis points. But it also reduced interest rates on its special FD scheme, Amrit Vrishti (444 days) by a huge 25 basis points.

When Will SBI's New Interest Rates Come Into Effect?

The latest downward revision in fixed deposits and lending rates by SBI will come into effect from December 15, 2025.

SBI FD Interest Rates:

While SBI has kept FD rates unchanged on majority of its tenures, the bank reduced rate by 5 basis points on 2 years to less than 3 years tenure for deposits below Rs 3 crore.

With effect from December 15, general individuals will earn 6.40% on FDs for 2 years to less than 3 years tenure, and senior citizens will earn 6.90%. Earlier, the rates were 6.45% and 6.95% respectively.

FDs on rest of tenures were same as before. That being said, general individuals will continue to earn 3.05% rate on 7 days to 45 days tenure; followed by 4.90% rate on 46 days to 179 days tenure; and 5.90% on 211 days to less than 1 year tenure. The rate will same as 6.25% on 1 Year to less than 2 years tenure, 6.30% on 3 years to less than 5 years tenure and 6.05% on the largest tenure of 5 years and up to 10 years.

Meanwhile, senior citizens will continue to earn 3.55% on 7 days to 45 days tenure, 5.40% on 46 days to 179 days tenure, 6.15% on 180 days to 210 days tenure, 6.40% on 211 days to less than 1 year tenure, 6.75% on 1 Year to less than 2 year tenure, 6.80% on 3 years to less than 5 years, and 7.05% on 5 years and up to 10 years.

SBI Amrit Vrishti FD Rates:

However, SBI reduced rate on its special FD scheme Amrit Vrishti by a huge 25 bps to 6.45% from earlier 6.60%. The tenure of the scheme is 444 days. Senior Citizens and Super Senior Citizens are eligible for their additional benefits in rate of interest.

SBI Lending Interest Rates:

The lender has revised its benchmark lending rates and the new interests will be imposed from December 15 onward.

SBI MCLR Rate Cut:

The MCLR rate is reduced by 5 basis points. From December 15, MCLR on 1-year tenure will be 8.70% from 8.75%, while MCLR will be 8.75% on two years from 8.80%. The rate will be 8.80% on 3-years from 8.85%.

On lower tenures, MCLR will be at 7.85% on overnight and 1-month tenures compared to 7.90% rate. Further, MCLR will be 8.25% on 3-months from 8.30%, and the rate will be 8.60% on 6-months tenure from 8.65%.

SBI EBLR/RLLR:

Unlike MCLR, SBI reduced its external benchmark lending rate (EBLR) and repo-rate-linked lending rate (RLLR) by 25 basis points with effect from December 15.

EBLR rate will be 7.90% +CRP+BSP compared to 8.15% +CRP+BSP.

While RLLR rate will be 7.50% +CRP from 7.75% +CRP.

The cut in lending rates is likely to reduce EMIs on home loans, personal loans, and other term loans.

What is MCLR?

MCLR's full form is Marginal Cost of Funds-Based Lending Rate (MCLR), and it is the minimum lending rate below which a bank is not permitted to lend. Implemented on April 1, 2016, MCLR replaced the earlier base rate system for determining the lending rates for commercial banks. However, MCLR is also replaced by EBLR and RLLR.

What Is EBLR?

EBLR means External Benchmark Lending Rate which was introduced by RBI in October 2019. EBLR connects lending rates by financial institutions to benchmarks set by RBI or other approved financial bodies.

What Is RLLR?

RLLR means repo-linked loan or lending rate, that are directly linked to RBI's policy repo rate. Any change in repo rate by RBI will lead to direct impact on lending rates offered by banks. Hence, if repo rate is reduced, banks follow suit by lowering their own benchmark lending rates, which eventually lead to lower term loan rates for consumers.

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