SBI lending rates have increased following the Reserve Bank of India’s latest repo rate hike, raising the possibility of higher borrowing costs for home loan and other eligible loan customers.
State Bank of India has revised its external benchmark-linked lending rates and repo-linked lending rate, while also increasing its marginal cost of funds-based lending rates on selected tenures.
The changes follow the RBI’s 25-basis-point repo rate increase to 5.50% on October 7, 2026.
SBI’s revised rates mean some borrowers could pay more interest when the changes apply to their loans, although the actual impact will depend on the loan’s benchmark and interest-rate reset schedule.
SBI Lending Rates: What Has Changed?
SBI has increased its MCLR by 15 basis points on five tenures, effective October 15, 2026.
The overnight and one-month MCLR rates remain unchanged, while the rates for three months, six months, one year, two years and three years have increased.
The revised MCLR rates are:
Overnight: 7.85%
One month: 7.85%
Three months: 8.40%
Six months: 8.75%
One year: 8.85%
Two years: 8.90%
Three years: 8.95%
The one-year MCLR has increased from 8.70% to 8.85%, while the three-year rate has moved from 8.80% to 8.95%.
Borrowers whose loans are linked to these benchmarks should check the applicable rate and reset date with SBI.
Why Has SBI Increased Its Lending Rates?
The revision comes after the RBI raised its policy repo rate by 25 basis points to 5.50%. The repo rate influences the cost of funds across the banking system and can affect lending rates on loans linked to external benchmarks.
Banks use different benchmarks to determine loan interest rates. These include the External Benchmark-linked Lending Rate (EBLR), Repo Linked Lending Rate (RLLR) and Marginal Cost of Funds-based Lending Rate (MCLR).
Changes do not necessarily affect every borrower at the same time because the applicable benchmark and reset conditions vary.
SBI’s latest changes include increases in its external benchmark-linked and repo-linked rates, along with selected MCLR tenures.
Borrowers should check the bank’s latest official rate schedule to understand which revision applies to their particular loan.
Will Your SBI Home Loan EMI Increase?
An increase in lending rates can raise the interest cost of a loan. However, it does not automatically mean every SBI customer will see an immediate increase in their monthly instalment.
The impact depends on whether the loan is linked to a revised benchmark, the outstanding principal, the remaining repayment period and the date on which the new interest rate takes effect.
Some borrowers may face a higher EMI, while others may see their repayment tenure extended if the EMI remains unchanged.
For example, a borrower with a floating-rate home loan linked to an affected benchmark may experience a change when the bank resets the applicable rate.
The actual increase cannot be determined without details such as the outstanding loan amount, current interest rate and remaining tenure.
Borrowers should review loan statements and any notifications received from SBI.
The bank can confirm the revised interest rate, the effective date and whether the EMI or repayment period will change.
What Should SBI Borrowers Do Now?
Customers should first identify the benchmark linked to their loan and check whether it has been revised.
They can then ask SBI for an updated repayment schedule to understand the effect on their monthly budget and total interest payable.
Borrowers who can comfortably afford additional repayments may also consider making partial prepayments to reduce the outstanding principal.
Before doing so, they should check the applicable loan terms, charges, and whether using their savings for repayment is financially appropriate.
Those considering refinancing with another lender should compare the new interest rate, processing fees, other charges and remaining loan tenure.
A lower advertised rate does not always translate into overall savings once all costs are included.
SBI’s lending rate revision is an important development for borrowers following the RBI’s latest monetary policy decision.
Checking the applicable benchmark and reset date is the most reliable way for customers to determine whether their loan costs are likely to rise.
