RBI rate cut effect: SBI gives big relief to borrowers; slashes interest rates by up to 50 bps

The State Bank of India (SBI), country’s largest lender, slashed its lending rates by 50 basis points, bringing much-needed relief to both existing and new borrowers.With this revision, SBI’s repo linked lending rate (RLLR) now stands at 7.75 per cent, while its external benchmark based lending rate (EBLR) dropped to 8.15 per cent from 8.65 per cent. Both changes came into effect from June 15, 2025.Besides these, SBI also lowered interest rates on fixed deposits by 25 basis points across various maturities for amounts up to Rs 3 crore. The revised deposit rates also take effect from June 15.Under the new structure, interest on 1-2 year term deposits has been cut by 25 basis points to 6.50 per cent, while 2-3 year deposits will now fetch 6.45 per cent. FDs with a maturity of 3-5 years have been revised to 6.30 per cent, and those of 5-10 years will offer 6.05 per cent. Even the bank’s special ‘444-day’ Amrit Vrishti scheme has seen a rate cut from 6.85 per cent to 6.60 per cent.Senior citizens will continue to enjoy an additional 50 basis points over the card rate, while super senior citizens get an extra 60 basis points.The rate changes mark a significant step by SBI to align with the RBI’s growth-supportive stance, even as it balances borrower benefit and depositor expectations.This move comes after the Reserve Bank of India’s (RBI) aggressive policy easing on June 6, when it reduced the benchmark repo rate, the steepest reduction in four years, by 50 basis points to 5.5 per cent. With this cut, the apex bank aimed to revive economic growth, which slipped to 6.5 per cent in FY25.