KKN Gurugram Desk | The Reserve Bank of India (RBI) recently reduced the repo rate by 25 basis points, marking its first rate cut in five years. Following this decision, India’s largest lender, the State Bank of India (SBI), has announced lower interest rates on retail and business loans.

The reduction in loan interest rates will benefit home buyers, business owners, and vehicle loan borrowers. The new loan rates are linked to the External Benchmark Rate (EBR), making financing more affordable for consumers.

Impact of RBI Repo Rate Cut on Loan Interest Rates

The repo rate is now set at 6.25%, and SBI has adjusted its interest rates accordingly.

✔ Home loans under the EBR model start at 8.9%, which includes the RBI repo rate of 6.25% and a spread of 2.65%.
✔ Housing loan interest rates now range between 8.25% and 9.2%, depending on the borrower’s credit score.
✔ SBI has also adjusted interest rates on business loans, making them more competitive.

This move is expected to boost lending activity and encourage more individuals to opt for home and business loans.

Latest SBI Home Loan Interest Rates

SBI has revised its home loan rates based on the borrower’s CIBIL score and the loan type.

✔ Regular home loans: 8.25% to 9.2%
✔ MaxGain (Overdraft) home loan: 8.45% to 9.4%
✔ Top-up home loans: 8.55% to 11.05%
✔ Top-up overdraft loans: 8.75% to 9.7%
✔ Loans against property: 9.75% to 11.05%
✔ Reverse mortgage for senior citizens: 11.3%
✔ YONO Insta home top-up loans: 9.1%

???? Tip: The interest rates vary based on the borrower’s creditworthiness and CIBIL score.

How Business Loans Are Affected?

✔ SBI business loans are linked to the Marginal Cost of Funds-Based Lending Rate (MCLR).
✔ These rates may only decrease when deposit interest rates drop.
✔ Some private banks, like HDFC Bank, increased their MCLR despite RBI’s rate cut.

This means that business loan rates may not reduce immediately, but they could become cheaper if banks lower deposit rates.

SBI Auto Loan Interest Rates After the Rate Cut

✔ SBI auto loans are linked to the one-year MCLR, which currently stands at 9%.
✔ The final auto loan interest rates vary between 9.2% and 10.15%, based on loan type and borrower profile.
✔ NRI car loans and standard car loans range from 9.2% to 10.15%.
✔ Loyalty car loans offer slightly lower rates, between 9.15% and 10.1%.
✔ Green car loans for electric vehicles (EVs) are available at 9.1% to 10.15%, with a 0.5% interest rate discount for electric vehicle buyers.
✔ Two-wheeler loan interest rates range from 13.35% to 14.85%.

SBI’s move to lower auto loan rates, especially for electric vehicles, signals its commitment to promoting sustainable and green mobility while keeping its loan rates competitive.

What Does This Mean for Borrowers?

1️⃣ Lower interest rates mean reduced EMIs for home and business loan borrowers.
2️⃣ Auto loan borrowers, especially those buying electric vehicles, can benefit from cheaper financing.
3️⃣ Business loan borrowers may have to wait until deposit rates drop to see further reductions.
4️⃣ Consumers with a high CIBIL score can access loans at more affordable rates.

This is a positive move for loan seekers, making financing options cheaper and more accessible.

Will Loan Rates Continue to Drop?

???? Experts believe further rate cuts could be possible if inflation remains under control.

✔ If RBI continues to ease monetary policy, more banks may follow SBI’s lead and reduce lending rates.
✔ However, MCLR-based loans may not see an immediate reduction.

Borrowers should monitor market trends and interest rate movements to capitalize on the best loan rates available.

???? SBI has reduced interest rates on home, business, and auto loans after RBI’s repo rate cut.
???? Loan interest rates now range from 8.25% to 11.3%, depending on loan type and credit score.
???? Borrowers purchasing electric vehicles get a 0.5% interest rate discount on auto loans.
???? Business loan rates are tied to MCLR, meaning further reductions depend on bank deposit rate trends.
???? Further rate cuts depend on RBI’s monetary policy and inflation trends.

???? Stay tuned for the latest updates on finance, banking, and economic news at KKNLive.com! ????