New Delhi: In what could bring relief to lakhs of State Bank of India (SBI) customers, the PSU Bank is offering option to its existing home loan borrowers to switch over to EBR stands for External Benchmark Rate from the existing MCLR based loans.

By paying a one time switchover fee plus GST, SBI home loan borrowers can avail the above option on lower interest rates. Additionally, women loan borrowers will get an a special discount of 0.05 percent on interest rates.

What is EBLR? Is it a new option?

EBLR stands for External Benchmark Lending Rate. SBI has adopted Repo Rate as the external benchmark to link its floating rate home loans with effect from October 2019. Floating rate home loan borrowers with regular account conduct as on the date of switch over, can be migrated to the new interest rate structure. It is a new interest rate structure. All floating rate home loans will have interest rates linked to External Benchmark.

How much is the fee?

Customer will have to pay one time switch over fee of Rs 5000 plus taxes is applicable.

When does interest rate change under EBR Option?

The interest rates will change at quarterly interval on 1st day of calendar quarter subsequent to the change in RBI’s Repo Rate. It may be noted that the RBI slashed repo rate to 4 percent since the COVID-19 outbreak.

Rates of interest for various home loan options

Currently SBI’s EBR linked home loan rates start from 6.70 percent. Those on MCLR based home loan rates pay interest rates starting forom 7.45 and base rate linked home loans borrowers pay interest starting from 7.85 percent. 

Those with long outstanding home loans can benefit from EBR, given its lower interest rate and also the resetting of interest rates based on RBI’s revision in repo rates.


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