Mon Apr 14 16:52:40 UTC 2025: ## SBI and Bank of India Cut Lending Rates After RBI Policy Change

**New Delhi, April 14, 2025** – State Bank of India (SBI) and Bank of India have reduced their lending rates, following a 25-basis-point cut in the Reserve Bank of India’s (RBI) key interest rate. This move, effective April 15th, brings relief to borrowers across the country.

SBI lowered its Repo Linked Lending Rate (RLLR) to 8.25% and its External Benchmark Based Lending Rate (EBLR) to 8.65%, both by 25 basis points. The bank also decreased its home loan interest rates by the same margin. Deposit rates were simultaneously reduced by 10-25 basis points, affecting various fixed deposit tenors and amounts. Specific changes to rates for different deposit terms and amounts are detailed in the original report. A new ‘444 days’ (Amrit Vrishti) scheme with special rates for senior citizens was also announced.

Bank of India mirrored SBI’s move, reducing its home loan interest rates by 25 basis points to 7.9% per annum, depending on CIBIL score. The bank also announced cuts across select retail loan products, including vehicle, personal, property, education and reverse mortgage loans. Additionally, Bank of India discontinued its 400-day special deposit scheme.

In the private sector, HDFC Bank lowered savings account interest rates by 25 basis points to 2.75% for balances up to ₹50 lakh, and to 3.25% for higher balances, marking the lowest rate among private sector peers. These changes are effective from April 12th.

The RBI’s rate cut, its second consecutive reduction, aims to stimulate economic growth, particularly in the face of potential reciprocal tariffs from the U.S. The coordinated rate reductions by major banks are expected to ease the financial burden on borrowers across India.

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