Synopsis
In response to a recent 25 bps hike, the State Bank of India has updated its home loan interest rates. Those linked to the External Benchmark Linked Rate will need to revise their equated monthly installments. Borrowers can mitigate the impact through options like adjusting EMIs or extending the loan period.
ET OnlineState Bank of India (SBI) has revised its home loan interest rates linked to the External Benchmark Linked Rate (EBLR). The rate hike came after the bank increased its EBLR and Repo Linked Lending Rate (RLLR) by 25 bps each on Thursday..
An increase in home loan rates mean that borrowers of loans linked to the EBLR will have to spend more on their equated monthly instalment (EMI). Since most EBLR-linked home loans are linked to the RRLR, repo rate-linked loan borrowers also need to pay more on their EMIs.
But how a 25 bps hike in your SBI repo rate-linked home loan can impact your EMI? Where can you save more interest - by choosing a higher EMI or the pre-rate revision EMI, let’s figure it out in this write-up.
Revised SBI EBLR loan rates (with effect from October 15, 2026)
| Loan type | Interest rate |
| Home Loan (TL) | 7.50% to 8.80% |
| Home Loan Maxgain (OD) | 8.00% to 9.30% |
| Top Up Loan | 8.00% to 10.75% |
| Top Up (OD) Loan | 8.50% to 11.25% |
| Loan Against Property (P-LAP) | 9.20% to 10.75% |
| Reverse Mortgage Loan (RML) | 10.55% |
| YONO Insta Home Top Up Loan | 8.35% |
How a 25 bps interest rate hike in SBI home loan can impact your EMI?
In an illustration, Bankbazaar shows how a 25 bps hike can impact your outstanding home loans of Rs 30 lakh-Rs 1 crore if the pre-revision interest rate was 8.00% and the outstanding tenure was 20 years.
It also shows where you can save a higher amount on your loan- by opting for a higher EMI or the pre-rate revision EMI.
Impact of 25 bps rate hike on your home loan
| INPUTS | Particulars |
| Base interest rate (p.a.) | 8.00% |
| Tenure (years) | 20 |
| Rate hike (bps) | 25 |
| Tenure (months) | 240 |
| New interest rate (p.a.) | 8.25% |
| A) BASE LOAN (before hike, 8% rate) | ||||
| Loan amount | ₹30 Lakh | ₹50 Lakh | ₹80 Lakh | ₹1 Crore |
| Monthly EMI | ₹25,093 | ₹41,822 | ₹66,915 | ₹83,644 |
| Total repaid | ₹60,22,368 | ₹1,00,37,281 | ₹1,60,59,649 | ₹2,00,74,562 |
| Total interest | ₹30,22,368 | ₹50,37,281 | ₹80,59,649 | ₹1,00,74,562 |
Once the bank increases the interest rate, you get two options based on loan conditions- you can either keep the EMI the same or increase it as per the revised interest rate.
If you keep the EMI the same, the bank extends the loan tenure. If you pay the increased EMI as per the new rate, your tenure remains the same. But, in which case, can you save a higher amount in interest? Let’s see!
Same tenure, higher EMI (at 8.25% rate)
| Particulars | ₹30 Lakh | ₹50 Lakh | ₹80 Lakh | ₹1 Crore |
| New EMI | ₹25,562 | ₹42,603 | ₹68,165 | ₹85,207 |
| EMI increase per month | ₹469 | ₹781 | ₹1,250 | ₹1,563 |
| Tenure (months, unchanged) | 240 | 240 | 240 | 240 |
| Total repaid | ₹61,34,873 | ₹1,02,24,788 | ₹1,63,59,661 | ₹2,04,49,576 |
| Total interest | ₹31,34,873 | ₹52,24,788 | ₹83,59,661 | ₹1,04,49,576 |
| Extra interest vs base | ₹1,12,504 | ₹1,87,507 | ₹3,00,011 | ₹3,75,014 |
Same EMI, longer tenure (at 8.25% rate)
| Particulars | ₹30 Lakh | ₹50 Lakh | ₹80 Lakh | ₹1 Crore |
| EMI (unchanged) | ₹25,093 | ₹41,822 | ₹66,915 | ₹83,644 |
| New tenure (months, rounded up) | 252.00 | 252.00 | 252.00 | 252.00 |
| Extra tenure (months) | 12 | 12 | 12 | 12 |
| New tenure (years) | 21.0 | 21.0 | 21.0 | 21.0 |
| Total repaid | ₹63,19,968 | ₹1,05,33,280 | ₹1,68,53,248 | ₹2,10,66,560 |
| Total interest | ₹33,19,968 | ₹1,05,33,280 | ₹1,68,53,248 | ₹2,10,66,560 |
| Extra interest vs base | ₹2,97,599 | ₹4,95,999 | ₹7,93,599 | ₹9,91,998 |
Comparison: Higher EMI vs longer tenure
| Particulars | ₹30 Lakh | ₹50 Lakh | ₹80 Lakh | ₹1 Crore |
| Extra interest – higher EMI route | ₹1,12,504 | ₹1,87,507 | ₹3,00,011 | ₹3,75,014 |
| Extra interest – longer tenure route | ₹2,97,599 | ₹4,95,999 | ₹7,93,599 | ₹9,91,998 |
| Saved by choosing higher EMI | ₹1,85,095 | ₹3,08,492 | ₹4,93,587 | ₹6,16,984 |
| Disclaimer: The figures and rates mentioned are illustrative calculations only. Actual figures may vary based on the borrower's profile; Source: BankBazaar.com | ||||
In the illustration, you can see that if you opt for a higher EMI, you may save approximately Rs 1.85 lakh on a Rs 30 lakh loan, Rs 3.08 lakh on a Rs 50 lakh, Rs 4.93 lakh on a Rs 80 lakh loan and Rs 6.17 lakh on a Rs 1 crore loan.
However, this is an illustration, to know the exact impact of the rate hike on your SBI home loan EMI, you need to check with your bank.
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