Home Loan Relief: SBI Lowers 1-Year MCLR from 8.55% to 8.30%

              📰 SBI Slashes Lending Rates by Up to 25 Basis Points, Home Loan EMIs to Get Cheaper

In a move set to bring relief to borrowers across the country, the State Bank of India (SBI) has announced a reduction in its Marginal Cost of Funds-Based Lending Rates (MCLR) by up to 25 basis points (bps), effective today. The rate cut will lower borrowing costs for a wide range of retail and corporate loans, including housing, auto, and personal loans.

The bank’s 1-year MCLR, a key benchmark for home loan pricing, has been reduced from 8.55% to 8.30%. Other tenures have also seen significant adjustments:

The reduction in MCLR reflects our ongoing efforts to support borrowers and stimulate demand amid a cooling inflationary environment,” SBI said in an official statement.

📉 Relief for Borrowers

This is the first major MCLR revision by SBI in several months and comes as retail inflation hits a six-year low, prompting calls for monetary easing across the banking sector.

Existing borrowers with loans linked to the MCLR will benefit when their reset dates arrive, potentially seeing lower Equated Monthly Installments (EMIs). New borrowers may also see more attractive loan terms, depending on their credit profile.

🏡 What It Means for Homebuyers

For a ₹50 lakh home loan with a 20-year term, the EMI could fall by approximately ₹750–₹900 per month, depending on the borrower's spread and reset cycle. This change is likely to spur demand in the housing sector, which has been witnessing steady but cautious growth.

Industry Response

Banking experts say the move is timely and could trigger similar rate revisions by other major lenders, particularly if the Reserve Bank of India (RBI) opts for a policy rate cut in the next review.