Home loan interest rate cut by SBI: What HDFC, Axis, Bank of Baroda and other banks are offering

Following the RBI's decision to cut repo rates, the State Bank of India (SBI) has announced a reduction in its home loan interest rate by 25 basis points.

All home loans offered by SBI are linked to an external benchmark rate (EBR). Since October 2019, the public sector bank has adopted RBI's repo rate as EBR.

SBI home and home-related loan rates*

*Effective from February 15, 2025

The home loan interest rate offered by SBI as well as other banks vary from person to person, depending on their individual CIBIL scores.

Home loan rates of other banks

Source: Respective bank/lender's website as on February 17, 2025.

Following the RBI's decision to cut the repo rate by 25 basis points, several public sector banks, including Bank of Baroda, Punjab National Bank (PNB), Canara Bank, and Bank of India, have also reduced their repo rate-linked home loan rates by 0.25%.

With reduced rates, customers of these banks now have the option to either lower their EMIs while keeping the tenure unchanged, or shorten their loan tenure while maintaining the same EMI. Private sector lenders are also expected to offer similar relief to their borrowers soon.