SBI Home Loan Rate Cut: The country’s leading lender, State Bank of India (SBI) has cut the marginal cost of fund-based lending rate (MCLR) by up to 25 bps. The new rates, applicable from July 15, 2025, are for tenures of overnight to 3 years. The new MCLR rates are in the 7.95 per cent to 8.90 per cent compared to 8.20 per cent to 9.10 per cent earlier. After the rate revision, loans linked to MCLR are set to reduce their interest rates. In this write-up, know how much you may save on 1-3 year loans of Rs 1 lakh-Rs 20 lakh if SBI cuts loan rates after the MCLR rate slash.
New MCLR rates for SBI loans
The bank has cut the MLCR rate by 25 bps for its overnight to 1-month loan. It has been revised to 7.95 per cent from 8.20 per cent.
For the 3-month tenure, the lender has reduced the rate by 20 bps, to 8.35 per cent from 8.55 per cent.
For its 6-month loan, the new MCLR rate is 8.70 per cent as against 8.90 per cent earlier.
The 1-year loan saw a 20 bps point cut to 8.80 per cent from 9 per cent.
On the 2-year loan, SBI’s new MCLR rate is 8.85 per cent compared to 9.05 per cent earlier.
For the 3-year loan, the new MCLR rate is 8.90 per cent compared to 9.10 per cent earlier.
Let’s see how much less borrowers may save on 1-3 year, Rs 1 lakh-Rs 20 lakh loans if SBI cuts loan rates by the same percentage points as MCLR rates.
Amount saved on 1-year loans (Rs 1 lakh-Rs 20 lakh)
| Loan amount |
At 9% |
At 8.80% |
Amount saved |
| ₹ 1,00,000.00 |
₹ 1,04,941.77 |
₹ 1,04,830.51 |
₹ 111.26 |
| ₹ 2,00,000.00 |
₹ 2,09,883.54 |
₹ 2,09,661.02 |
₹ 222.52 |
| ₹ 3,00,000.00 |
₹ 3,14,825.32 |
₹ 3,14,491.53 |
₹ 333.79 |
| ₹ 4,00,000.00 |
₹ 4,19,767.09 |
₹ 4,19,322.04 |
₹ 445.05 |
| ₹ 5,00,000.00 |
₹ 5,24,708.86 |
₹ 5,24,152.55 |
₹ 556.31 |
| ₹ 6,00,000.00 |
₹ 6,29,650.63 |
₹ 6,28,983.06 |
₹ 667.57 |
| ₹ 7,00,000.00 |
₹ 7,34,592.40 |
₹ 7,33,813.57 |
₹ 778.84 |
| ₹ 8,00,000.00 |
₹ 8,39,534.18 |
₹ 8,38,644.08 |
₹ 890.10 |
| ₹ 9,00,000.00 |
₹ 9,44,475.95 |
₹ 9,43,474.59 |
₹ 1,001.36 |
| ₹ 10,00,000.00 |
₹ 10,49,417.72 |
₹ 10,48,305.10 |
₹ 1,112.62 |
| ₹ 11,00,000.00 |
₹ 11,54,359.49 |
₹ 11,53,135.61 |
₹ 1,223.89 |
| ₹ 12,00,000.00 |
₹ 12,59,301.27 |
₹ 12,57,966.12 |
₹ 1,335.15 |
| ₹ 13,00,000.00 |
₹ 13,64,243.04 |
₹ 13,62,796.63 |
₹ 1,446.41 |
| ₹ 14,00,000.00 |
₹ 14,69,184.81 |
₹ 14,67,627.14 |
₹ 1,557.67 |
| ₹ 15,00,000.00 |
₹ 15,74,126.58 |
₹ 15,72,457.65 |
₹ 1,668.94 |
| ₹ 16,00,000.00 |
₹ 16,79,068.35 |
₹ 16,77,288.16 |
₹ 1,780.20 |
| ₹ 17,00,000.00 |
₹ 17,84,010.13 |
₹ 17,82,118.67 |
₹ 1,891.46 |
| ₹ 18,00,000.00 |
₹ 18,88,951.90 |
₹ 18,86,949.18 |
₹ 2,002.72 |
| ₹ 19,00,000.00 |
₹ 19,93,893.67 |
₹ 19,91,779.69 |
₹ 2,113.98 |
| ₹ 20,00,000.00 |
₹ 20,98,835.44 |
₹ 20,96,610.20 |
₹ 2,225.25 |
Amount saved on 2-year loans (Rs 1 lakh-Rs 20 lakh)
| Loan amount |
At 9.05% |
At 8.85% |
Amount saved |
| ₹ 1,00,000.00 |
₹ 1,09,698.45 |
₹ 1,09,478.28 |
₹ 220.17 |
| ₹ 2,00,000.00 |
₹ 2,19,396.90 |
₹ 2,18,956.56 |
₹ 440.33 |
| ₹ 3,00,000.00 |
₹ 3,29,095.34 |
₹ 3,28,434.84 |
₹ 660.50 |
| ₹ 4,00,000.00 |
₹ 4,38,793.79 |
₹ 4,37,913.12 |
₹ 880.67 |
| ₹ 5,00,000.00 |
₹ 5,48,492.24 |
₹ 5,47,391.40 |
₹ 1,100.84 |
| ₹ 6,00,000.00 |
₹ 6,58,190.69 |
₹ 6,56,869.68 |
₹ 1,321.00 |
| ₹ 7,00,000.00 |
₹ 7,67,889.14 |
₹ 7,66,347.96 |
₹ 1,541.17 |
| ₹ 8,00,000.00 |
₹ 8,77,587.58 |
₹ 8,75,826.25 |
₹ 1,761.34 |
| ₹ 9,00,000.00 |
₹ 9,87,286.03 |
₹ 9,85,304.53 |
₹ 1,981.50 |
| ₹ 10,00,000.00 |
₹ 10,96,984.48 |
₹ 10,94,782.81 |
₹ 2,201.67 |
| ₹ 11,00,000.00 |
₹ 12,06,682.93 |
₹ 12,04,261.09 |
₹ 2,421.84 |
| ₹ 12,00,000.00 |
₹ 13,16,381.37 |
₹ 13,13,739.37 |
₹ 2,642.01 |
| ₹ 13,00,000.00 |
₹ 14,26,079.82 |
₹ 14,23,217.65 |
₹ 2,862.17 |
| ₹ 14,00,000.00 |
₹ 15,35,778.27 |
₹ 15,32,695.93 |
₹ 3,082.34 |
| ₹ 15,00,000.00 |
₹ 16,45,476.72 |
₹ 16,42,174.21 |
₹ 3,302.51 |
| ₹ 16,00,000.00 |
₹ 17,55,175.17 |
₹ 17,51,652.49 |
₹ 3,522.68 |
| ₹ 17,00,000.00 |
₹ 18,64,873.61 |
₹ 18,61,130.77 |
₹ 3,742.84 |
| ₹ 18,00,000.00 |
₹ 19,74,572.06 |
₹ 19,70,609.05 |
₹ 3,963.01 |
| ₹ 19,00,000.00 |
₹ 20,84,270.51 |
₹ 20,80,087.33 |
₹ 4,183.18 |
| ₹ 20,00,000.00 |
₹ 21,93,968.96 |
₹ 21,89,565.61 |
₹ 4,403.34 |
Amount saved on 3-year loans (Rs 1 lakh-Rs 20 lakh)
| Loan amount |
At 9.10% |
At 8.90% |
Amount saved |
| ₹ 1,00,000.00 |
₹ 1,14,646.66 |
₹ 1,14,311.56 |
₹ 335.10 |
| ₹ 2,00,000.00 |
₹ 2,29,293.32 |
₹ 2,28,623.13 |
₹ 670.19 |
| ₹ 3,00,000.00 |
₹ 3,43,939.98 |
₹ 3,42,934.69 |
₹ 1,005.29 |
| ₹ 4,00,000.00 |
₹ 4,58,586.64 |
₹ 4,57,246.25 |
₹ 1,340.39 |
| ₹ 5,00,000.00 |
₹ 5,73,233.30 |
₹ 5,71,557.81 |
₹ 1,675.49 |
| ₹ 6,00,000.00 |
₹ 6,87,879.96 |
₹ 6,85,869.38 |
₹ 2,010.58 |
| ₹ 7,00,000.00 |
₹ 8,02,526.62 |
₹ 8,00,180.94 |
₹ 2,345.68 |
| ₹ 8,00,000.00 |
₹ 9,17,173.28 |
₹ 9,14,492.50 |
₹ 2,680.78 |
| ₹ 9,00,000.00 |
₹ 10,31,819.94 |
₹ 10,28,804.06 |
₹ 3,015.87 |
| ₹ 10,00,000.00 |
₹ 11,46,466.60 |
₹ 11,43,115.63 |
₹ 3,350.97 |
| ₹ 11,00,000.00 |
₹ 12,61,113.26 |
₹ 12,57,427.19 |
₹ 3,686.07 |
| ₹ 12,00,000.00 |
₹ 13,75,759.92 |
₹ 13,71,738.75 |
₹ 4,021.17 |
| ₹ 13,00,000.00 |
₹ 14,90,406.58 |
₹ 14,86,050.31 |
₹ 4,356.26 |
| ₹ 14,00,000.00 |
₹ 16,05,053.24 |
₹ 16,00,361.88 |
₹ 4,691.36 |
| ₹ 15,00,000.00 |
₹ 17,19,699.90 |
₹ 17,14,673.44 |
₹ 5,026.46 |
| ₹ 16,00,000.00 |
₹ 18,34,346.56 |
₹ 18,28,985.00 |
₹ 5,361.56 |
| ₹ 17,00,000.00 |
₹ 19,48,993.22 |
₹ 19,43,296.56 |
₹ 5,696.65 |
| ₹ 18,00,000.00 |
₹ 20,63,639.88 |
₹ 20,57,608.13 |
₹ 6,031.75 |
| ₹ 19,00,000.00 |
₹ 21,78,286.54 |
₹ 21,71,919.69 |
₹ 6,366.85 |
| ₹ 20,00,000.00 |
₹ 22,92,933.20 |
₹ 22,86,231.25 |
₹ 6,701.94 |
(Disclaimer: These are projections. These changes will apply only when the bank cuts the loan interest rates by the same percentage points.)
