Home loan EMIs to reduce as SBI cuts external benchmark rate by 25 bps

The country's largest lender State Bank of India (SBI) on Monday announced reduction in its external benchmark-based rate by 25 basis points to 7.80 per cent from 8.05 per cent.

The new rates will be applicable from January 1, 2020, the bank said in a statement.

SBI "has announced the reduction in its external benchmark-based rate (EBR) by 25 basis points to 7.80 per cent p.a from 8.05 per cent per annum with effect from January 1, 2020," it said.

With this reduction, interest rate for existing home loan customers as well as micro, small and medium enterprises (MSME) borrowers who have availed loans linked to external benchmark based rate would come down by 25 basis points, it said.

The new home buyers will get loans at an interest rate starting from 7.90 per cent per annum compared to earlier 8.15 per cent per annum, it said.