SBI Home Loan
There is good news for those taking home loans from State Bank of India (SBI). The bank has given the benefit of the repo rate cut by the Reserve Bank of India (RBI) to its customer. The bank has cut interest rates on home loans. This has brought great relief to those taking home loans from SBI. Their emai has reduced. For a long time people were waiting for the home loan EMI to decrease. Let us know how much the bank has reduced the interest rates and how much will the customer who takes home loans will get.
Decision after cut in repo rate
State Bank of India (SBI) has announced a cut in its external benchmark-based lending rate (EBLR) and Repo Linked Lending Rate (RLLR) applied to various loans. This came after the Reserve Bank of India (RBI) after the decision to cut 25 basis points (BPS) in the repo rate in its MPC meeting last week to 6.50% to 6.25%. The revised loan rates will be effective from February 15, 2025. However, the bank has kept marginal cost based lending rates (MCLR), base rate and benchmark Prime Lending Rate (BPLR) unchanged from previous rates.
What is EBLR?
EBLR means external benchmark lending rate. All floating rate home loan interest rates are connected to the external benchmark. Previous EBLR: 9.15% + CRP + BSP which has been revised to 8.90% + CRP + BSP. The EBLR has been reduced by 0.25% (25 basis points). This means that borrowers with loans related to EBLR (such as home loan, personal loan and other retail loans) will get the benefit of low interest rate, resulting in EMI to decrease.
How low will your EAMI
Let’s assume that you have taken a loan of Rs 50 lakh from SBI, then you have to pay interest at the rate of 9.15%. In this situation, your monthly EAMI was becoming Rs 45,470 on the loan period of 20 years. Now that the bank has reduced the interest rate to 8.90%, your EMI will be reduced to Rs 44,665.
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