SBI Cuts FD Rates AND Loan Rates Following RBI Repo Cut
India’s largest bank, the State Bank of India (SBI), has implemented a major revision to its interest rates, effective Monday, December 15, 2025.
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This move comes directly after the RBI’s Monetary Policy Committee unanimously voted to reduce the Repo Rate by 25 basis points (bps) to 5.25%.
The adjustment is a classic financial balancing act: a little pain for depositors, but a bit of relief for borrowers.
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Deposit Cuts: The Pain for Savers
For those saving money, particularly short-term savers, rates are down.
Specific Tenures Hit: Deposits under ₹3 crore with a tenure of two to three years saw a reduction: The rate for the general public dropped from 6.45% to 6.40%, and for senior citizens, it fell from 6.95% to 6.90%.
Special Scheme Revised: The popular “444 days” Amrit Vrishti scheme also saw a cut, moving from 6.60% down to 6.45%.
Highest Rates: For those looking for maximum return, the highest rates (for deposits less than ₹3 crore) are now up to 6.05% for the general public and 7.05% for senior citizens, depending on the tenure.
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Lending Relief: The Good News for Borrowers
On the lending side, relief is coming to those with new or adjustable loans as both the minimum lending rates have been reduced.
Here’s the kicker on the borrowing side—loans just got cheaper:
MCLR Revision: The Marginal Cost of Funds-based Lending Rate (MCLR), which sets the minimum interest rate for loans, has been cut across the board:
The overnight and one-month rates dropped by 5 bps to 7.85%.
The key one and two-year rates have been revised from 8.75% to 8.70%.
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EBLR Reduction: SBI also significantly reduced the External Benchmark Linked Rate (EBLR) from 8.15% to 7.90%.
- Since the EBLR is tied directly to the RBI’s repo rate, this reduction is a clear sign that floating interest rate loans will adjust downwards.
For around 50 lakh government employees benefiting from the earlier Pay Commission updates and for other citizens taking out new loans, this rate cut provides a financial cushion. But for long-term savers, it’s a tight squeeze……
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Disclaimer: This information is based on the revised interest rates and lending rates announced by the State Bank of India, effective December 15, 2025.
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