SBI cuts external benchmark-based rate by 25 bps

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

The Reserve Bank of India has adopted the Repo rate to be the External Benchmark rate. And the Repo rate is the interest rate, at which the RBI lends funds to the



banks.

The new rates will be applicable from January 1, next year.

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