SBI Loan Interest Rates Hiked from October 15, 2026, bringing higher borrowing costs for customers whose loans are linked to the affected benchmarks.
The State Bank of India (SBI) has increased its Marginal Cost of Funds Based Lending Rate (MCLR) on five loan tenures, while overnight and one-month rates remain unchanged.
The bank has also raised its External Benchmark Linked Rate (EBLR) and Repo Linked Lending Rate (RLLR).
These revisions follow a reported 25-basis-point increase in the Reserve Bank of India’s (RBI) repo rate, which can influence borrowing costs across the banking system.
The changes do not mean that every SBI customer will immediately pay a higher EMI. The impact depends on the benchmark linked to the loan, its interest-rate reset date and the terms of the borrower’s agreement.
SBI Loan Interest Rates Hiked on Five Tenures
SBI revised its MCLR rates with effect from October 15, 2026. The bank increased rates by 0.15 percentage points, or 15 basis points, on five tenures ranging from three months to three years.
The overnight and one-month MCLR rates have been kept unchanged at 7.85%. However, customers with loans linked to the revised tenures could face higher interest costs when the new rates apply to their accounts.
The revised MCLR rates are as follows:
Overnight: 7.85%, unchanged
One month: 7.85%, unchanged
Three months: Increased from 8.25% to 8.40%
Six months: Increased from 8.60% to 8.75%
One year: Increased from 8.70% to 8.85%
Two years: Increased from 8.75% to 8.90%
Three years: Increased from 8.80% to 8.95%
The one-year MCLR has risen to 8.85%, while the three-year rate now stands at 8.95%. Borrowers should check their existing loan documents to determine which benchmark and reset period apply to their accounts.
SBI EBLR and RLLR Rates Also Increase
Alongside the MCLR revision, SBI has raised its External Benchmark Linked Rate from 7.90% to 8.15%, plus the applicable Credit Risk Premium (CRP) and Bank Spread (BSP).
The Repo Linked Lending Rate has also increased from 7.50% to 7.75%, plus the applicable CRP. These changes are relevant to borrowers whose loans are linked to the respective benchmarks.
Home loans and other eligible lending products may be affected differently depending on their interest-rate structure.
Customers with benchmark-linked loans should review the latest applicable rate and check with SBI if they are unsure how the revision affects their repayments.
Will SBI Borrowers Pay Higher EMIs?
The revised rates could increase monthly instalments for some borrowers, but the effect will vary from one loan to another.
Customers whose loans are linked to the affected benchmarks may see a change when their interest rates are reset under the terms of their agreements.
The final impact depends on factors such as the outstanding principal, remaining repayment period, applicable interest rate and the date on which the new rate takes effect.
A higher interest rate may lead to a higher EMI or, depending on the loan terms, a longer repayment period.
Borrowers should not assume that their EMI will change immediately on the date of the rate announcement. The timing and calculation of any revision depend on the applicable loan conditions.
What Borrowers Should Check Now
SBI customers should first identify whether their loan is linked to MCLR, EBLR, RLLR or another benchmark. They can then compare the applicable rate with the revised figures and review their next reset date.
Customers planning to take a new loan should also compare the applicable interest rate, repayment period and total borrowing cost before making a decision.
Even a small change in the interest rate can affect the overall amount paid over a long repayment period.
For existing borrowers, checking the loan statement and contacting the bank for clarification can help establish whether the latest revision applies to their account.
The key point is that SBI’s rate changes may increase borrowing costs for affected customers, but the actual impact depends on the terms of each loan.
