Mon Apr 14 16:52:40 UTC 2025: ## SBI and Bank of India Slash Lending Rates Following RBI Cut

**New Delhi, April 14, 2025** – State Bank of India (SBI) and Bank of India have announced reductions in their lending rates, bringing relief to borrowers across the country. The move follows the Reserve Bank of India’s (RBI) 25 basis point policy rate cut last week, the second consecutive reduction aimed at bolstering economic growth amidst potential US tariff threats.

SBI, India’s largest lender, has lowered its Repo Linked Lending Rate (RLLR) and External Benchmark Based Lending Rate (EBLR) by 25 basis points each, to 8.25% and 8.65% respectively. The changes are effective April 15, 2025. The bank also reduced its deposit rates by 10-25 basis points, with varying reductions across different fixed deposit terms and amounts. Details of these changes are available on SBI’s website.

Bank of India has mirrored SBI’s move, reducing its home loan interest rates by 25 basis points to 7.9% per annum (based on CIBIL score). This reduction also applies to several other retail loan products, including vehicle, personal, and education loans. The bank has also withdrawn its 400-day special deposit scheme. These changes are also effective April 15, 2025.

Meanwhile, private sector lender HDFC Bank has lowered its savings account interest rates by 25 basis points, to 2.75% for balances up to ₹50 lakh (the lowest among private sector peers). For balances above ₹50 lakh, the rate is now 3.25%. This reduction took effect April 12, 2025. The combined actions by these major banks are expected to significantly impact borrowing costs for consumers and businesses.

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