SBI cuts MCLR by 5–15 bps, raises home loans 25 bps, launches ₹4 lakh Agniveer loan

State Bank of India has rolled out three distinct lending moves in the same quarter, signalling a strategy to serve multiple stakeholder groups. The bank launched a collateral-free Agniveer loan of up to ₹4 lakh at 10.50% till September 30, 2025, becoming the first PSU bank to offer a tailor-made product under the Agnipath scheme. Simultaneously, SBI and Indian Overseas Bank cut their MCLR (Marginal Cost of Funds Based Lending Rate) by 5–15 basis points across tenures, making retail and corporate short-term borrowing cheaper.

The rate cuts reflect the RBI's accommodative monetary stance and SBI's push to grow its lending portfolio in a competitive market. Lower MCLR signals that fresh loans—personal loans, auto loans, and working capital facilities—will carry reduced pricing for new customers. However, the bank offset this move by raising new home loan rates by 25 basis points, now ranging between 8.55% and 9.10%, citing higher long-term borrowing costs.

SBI's home loan hike protects net interest margins as long-term deposit and bond costs climb. The simultaneous actions—cheaper short-term credit, costlier mortgages, and a concessional defence personnel product—show the bank managing three competing pressures: meeting government priorities, winning loan volume, and maintaining profitability in a rising-rate environment.