Sat Dec 13 18:20:00 UTC 2025: Here’s a summary of the text followed by a news article rewrite:

Summary:

In response to the Reserve Bank of India’s (RBI) policy rate cut, State Bank of India (SBI) and Indian Overseas Bank (IOB) have announced reductions in their lending rates. SBI is cutting its External Benchmark Linked Rate (EBLR) and Marginal Cost of Funds-Based Lending Rate (MCLR), as well as fixed deposit rates on some tenors, effective December 15, 2025. IOB is also reducing its External Benchmark Lending Rate (EBLR) and MCLR, passing the RBI’s cut to customers and aiming to boost affordability for borrowers.

News Article:

SBI and IOB Lower Lending Rates After RBI Policy Shift

New Delhi – December 12, 2025 – In a move aimed at stimulating economic growth, State Bank of India (SBI) and Indian Overseas Bank (IOB) have announced reductions in their lending rates, following the Reserve Bank of India’s (RBI) recent decision to lower the key interest rate.

SBI, the country’s largest lender, will reduce its External Benchmark Linked Rate (EBLR) by 25 basis points to 7.90%, effective December 15th. The bank is also decreasing its Marginal Cost of Funds-Based Lending Rate (MCLR) across all tenures by 5 basis points. While some fixed deposit rates will be lowered, others will remain unchanged.

Similarly, IOB announced a 25-basis-point reduction in its External Benchmark Lending Rate (EBLR), specifically the Repo Linked Lending Rate (RLLR), bringing it down to 8.10%. The bank has also approved a 5-basis-point reduction in its MCLR across tenors from three months to three years.

Both banks say the cuts will translate into lower Equated Monthly Installments (EMIs) for both new and existing borrowers, making home, vehicle, and personal loans more affordable. The move is also expected to benefit MSMEs and corporate borrowers by lowering their cost of funds and supporting working capital requirements.

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