Higher EMIs ahead: SBI increases lending rates

State Bank of India (SBI), the country’s largest public sector lender, has increased its External Benchmark-linked Rates (EBLR), Repo Linked Lending Rate (RLLR) and Marginal Cost of Funds Based Lending Rate (MCLR) on select tenures after the Reserve Bank of India (RBI) increased the repo rate by 25 basis points in its monetary policy meeting last week.

For SBI borrowers, a higher interest rate mean that they will have to spend more on their loans’ equated monthly instalment (EMI) as rates will also rise on loans linked to these benchmarks.

SBI increases EBLR and RLLR

The bank has revised its External Benchmark Linked Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR), effective October 15, 2026. The EBLR has been increased from 7.90% + CRP + BSP to 8.15% + CRP + BSP, while the RLLR has been raised from 7.50% + CRP to 7.75% + CRP. The Benchmark Prime Lending Rate (BPLR) is 14.65% p.a. w.e.f. September 15, 2026

As per SBI home loan website, “In the event of a change in benchmark rate (repo rate), the interest rate in home or home related loan accounts will also undergo a change. Upward revision in the repo rate will result in a consequent increase of the interest rate.”

Also read: Home loan EMI for these borrowers will go up as RBI increases repo rate by 25 bps: Know the impact on Rs 25 lakh-Rs 2 cr home loans

SBI increases MCLR on select tenures

The bank has kept its overnight and one-month MCLR unchanged at 7.85%. However, the MCLR for three months has been increased from 8.25% to 8.40%, while the six-month MCLR has gone up from 8.60% to 8.75%. The one-year MCLR has been raised from 8.70% to 8.85%, the two-year rate from 8.75% to 8.90%, and the three-year MCLR from 8.80% to 8.95%.

What is MCLR?

The Marginal Cost of Funds based Lending Rate (MCLR) is an internal, RBI-mandated benchmark rate that defines the minimum interest rate a bank can charge for loans. A bank determines its minimum interest rate by considering factors such as its cost of funds, operating costs and profit margin.

SBI FD interest rates

SBI has not revised rates on fixed deposit interest rates. The bank offers FD interest rates from 3.05% to 6.60% (including Amrit Vrishti special deposit) for general citizens. For senior citizens, the rates are from 3.55% to 7.10% for tenure ranging from 7 days to 10 years. These rates are effective from December 15, 2025.