Country’s largest lender State Bank of India (SBI) and Bank of India have reduced lending rates following Reserve Bank of India’s (RBI) policy rate cut.
| Photo Credit: Reuters
Bringing cheer to borrowers, the country’s largest lender State Bank of India (SBI) and Bank of India have reduced lending rates following Reserve Bank of India’s (RBI) policy rate cut, making loans cheaper for both existing and new borrowers. Private sector major HDFC Bank has lowered interest rate on savings accounts.
Both the SBI and Bank of India have announced a reduction of 25 basis points in their home loan interest rates.
With the latest round of reduction, the Repo Linked Lending Rate (RLLR) of the SBI would come down by 25 basis points to 8.25%.
It has also reduced the External Benchmark Based Lending Rate (EBLR) by similar basis points to 8.65%. The revised rates come into effect from April 15, 2025, according to updated rate information on SBI’s website.
The rate reduction is in response to last week’s RBI slashing key interest rate by 25 basis points for the second time in a row to support growth facing the threat of reciprocal tariffs by the U.S.
Besides, the bank also cut deposit rates by 10-25 basis points, which will again be effective from April 15.
With the revision, for fixed deposits up to ₹3 crore, the interest rate on 1-2 year term deposits will be lower by 10 basis points to 6.70%, and deposits having two years to less than 3 years maturity will attract 6.90% as against 7%.
In case of fixed deposits over ₹3 crore, term deposits of maturity 180 days to 210 days have been reduced by 20 basis points to 6.40% while for 211 days to less than 1 year by 25 basis points to 6.50%.
Similarly, for 1-2 years, the new interest rate would be 6.80% from 7%, and for 2-3 years it would be 6.75 from 7%, a reduction of 25 basis points.
SBI green rupee term deposit is available for three specific tenors of 1111, 1777 and 2222 days, at 10 bps below card rate.
The specific tenor scheme of ‘444 days’ (Amrit Vrishti) at rate of interest 7.05% is effective from April 15, 2025, and senior citizens are offered a rate of interest 7.55% and super senior citizens are offered an interest rate of 7.65%.
Meanwhile, private sector major HDFC Bank has lowered interest rate on savings accounts by 25 basis points to 2.75% which is the lowest among peers in the private sector.
For balances above ₹50 lakh, the rate now stands at 3.25% as against 3.5%. The reduction in rate is effective from April 12, as per the HDFC Bank’s website.
Another public sector Bank of India has withdrawn its 400-day special deposit scheme which offered 7.3%. The bank has announced a reduction of 25 basis points in its home loan interest rates, benefiting both new and existing customers.
With this revision, the home loan rate stands reduced to 7.9% per annum based on CIBIL score.
The revised rates come into effect from April 15, 2025.
In addition to home loans, Bank of India has reduced interest rates by 25 basis points across select existing retail loan products, including vehicle loan, personal loan, loan against property, education loan and Star reverse mortgage loan, it said.
Published – April 14, 2025 10:22 pm IST
