State Bank of India (SBI), the country’s largest lender, has announced a revision in loan interest rates effective from 15th August 2025. The revision comes after a change in MCLR (Marginal Cost of Funds Based Lending Rate) and EBR (External Benchmark Rate).
This update is important for anyone looking to take personal loans, gold loans, pension loans, education loans or loans against deposits/securities from SBI after the given date. Let’s simplify the circulars so that you can easily understand how these changes affect you.
What is MCLR and EBR?
- MCLR: The minimum interest rate at which banks lend to customers. SBI revises it monthly/quarterly.
- EBR: External Benchmark Rate linked to RBI’s repo rate. Education loans are usually tied to EBR.
When MCLR or EBR changes, loan interest rates are also revised.
Key Updates in SBI Loan Interest Rates
1. SBI Pension Loan Schemes
- Revised 2-Year MCLR: 8.80% (earlier 8.85%).
- Effective Rates (Fixed for entire loan tenure):
- SBI Pension Loan – 11.35%
- Jai Jawan Pension Loan – 11.35%
- Pension Loan for Treasury/ PSU Pensioners – 11.35% – 11.85%
- Pre-Approved Pension Loans – 11.35%
Note: PSU/Treasury pensioners will pay an extra 0.50% if their pension authority doesn’t give a no-objection undertaking.
2. SBI Gold Loans
- 3-Month Gold Loan: 8.75%
- 6-Month Gold Loan: 8.95%
- 12-Month Gold Loan: 9.05%
- EMI Gold Loan: 10.00%
- Gold Loan Overdraft (OD): 9.75%
3. Loan Against Securities
(For Mutual Funds, SGB, NSC, Insurance Policies etc.)
- Loan against MF/DAF – 11.25%
- Loan against Sovereign Gold Bonds – 10.75%
- Loan against NSC/KVP/Insurance – 11.25%
(These rates are fixed for the entire tenure, no reset.)
4. Loan Against Deposits
- Loan against FCNR Deposit (in INR) – 11.65% (MCLR + 2.90%)
- Loan against FCNR Deposit (in FC) – No change
- Loan against Domestic Deposits (TDR/STDR) – No change
- Loan against NRE/NRO Deposits – No change
5. SBI Education Loan Schemes
EBR revised from 8.65% → 8.15% (w.e.f. 15.06.2025).
Updated effective rates:
- PM Vidyalakshmi Scheme – 7.15% to 8.65% (depending on category)
- Student Loan (Up to ₹7.5 Lakh) – 10.15%
- Student Loan (Above ₹7.5 Lakh) – 9.15%
- Scholar Loan Scheme – 7.15% to 8.15%
- Global Ed-Vantage Scheme – 9.15% (with/without security)
- Shaurya Education Loan (Defense Students) – 9.15% to 10.15%
- Skill Loan Scheme – 9.65%
Girl students get 0.50% concession in most categories.
6. SBI Personal Loan (SBIPL)
- CIBIL Score-based Rates (2-Year MCLR + Spread)
- Score 650–699: 14.05%
- Score 700–749: 13.55%
- Score 750–799: 13.05%
- Score ≥800: 12.55%
Special Festive Season Offer (15 Aug 2025 – 31 Jan 2026)
- Processing Fee Waiver:
- Defense & Govt. employees: 100% waiver
- Salary Package Customers (Platinum/Rhodium): 100% waiver
- CIBIL ≥800: 50% waiver
- Others: Waiver based on category
This is the best time to apply for SBI Personal Loans due to lower processing charges.
What Does This Mean for Customers?
- New Borrowers: The revised rates apply only to new loans sanctioned on/after 15 Aug 2025.
- Existing Borrowers: Your loan interest rate remains unchanged.
- Students & Parents: Education loans have become cheaper due to the reduction in EBR.
- Festival Loan Seekers: Personal loans are more attractive with fee waivers till Jan 2026.
Final Thoughts
SBI’s latest revision in MCLR and EBR makes certain loans (like education loans and pension loans) more affordable, while personal loan borrowers get the added advantage of festive season offers.If you’re planning to apply for a loan against gold, securities, deposits, education or personal loan, this could be the right time, especially with concessions and fee waivers.