In a move that will make loans cheaper for both existing and new borrowers, the State Bank of India (SBI), the country's largest lender, has reduced its lending rates by 25 basis points following the Reserve Bank of India’s (RBI) recent repo rate cut.

With this revision, SBI's Repo Linked Lending Rate (RLLR) will drop to 8.25%, while the External Benchmark Based Lending Rate (EBLR) will fall to 8.65%. The revised rates will be effective from April 15, 2025, as per the updated information on SBI’s website.

The rate cut follows the RBI's decision last week to slash the key policy rate by 25 basis points -- its second consecutive reduction -- to support economic growth amid concerns over escalating trade tensions with the United States.

SBI has also announced a cut in its fixed deposit (FD) interest rates by 10-25 basis points. For deposits up to Rs 3 crore, 1-2 year term deposits will now earn 6.70%, while those maturing in 2-3 years will offer 6.90%, down from 7%.

For deposits above Rs 3 crore, interest on term deposits for 180–210 days has been reduced to 6.40%, and for 211 days to less than a year, to 6.50%. Similarly, 1-2 year FDs will now earn 6.80%, and 2-3 year deposits will fetch 6.75%.

SBI's green rupee term deposits -- offered for tenors of 1111, 1777, and 2222 days -- will be available at 10 basis points below the standard card rate. The special ‘Amrit Vrishti’ deposit scheme for 444 days will offer 7.05%, with senior and super senior citizens receiving 7.55% and 7.65%, respectively.

Private sector lender HDFC Bank has also reduced its savings account interest rates by 25 basis points, bringing the rate down to 2.75% -- the lowest among its peers. Balances above Rs 50 lakh will now earn 3.25%, down from 3.5%. These changes took effect on April 12.

Public sector lender Bank of India has followed suit, announcing a 25 basis point reduction in home loan rates to 7.9% per annum, based on borrowers' CIBIL scores. The bank has also withdrawn its 400-day special deposit scheme, which earlier offered 7.3%.

Additionally, Bank of India has reduced interest rates by 25 basis points across a range of retail loan products, including personal loans, vehicle loans, education loans, loans against property, and reverse mortgage loans. These revised rates also take effect from April 15.