SBI's revised EBLR-linked rates took effect on October 15, 2026. The interest rate on regular home loans now ranges from 7.50% to 8.80%, while rates for Home Loan Maxgain range from 8% to 9.30%. Top-up loans carry rates of 8% to 10.75%, while top-up overdraft loans are priced between 8.50% and 11.25%.
How much will your home loan EMI increase?
An illustration by BankBazaar shows how a 25 bps increase could affect outstanding home loans ranging from ₹30 lakh to ₹1 crore, assuming the interest rate rises from 8% to 8.25% and the remaining tenure is 20 years.
For a borrower with an outstanding loan of ₹50 lakh, the monthly EMI would rise by approximately ₹781 if the remaining tenure stays unchanged. For a ₹1 crore loan, the increase would be around ₹1,563 a month. Borrowers should note that these figures assume a 20-year remaining tenure and an 8% starting rate; actual increases will vary.
Impact of a 25 bps hike on home loan EMI
|
Outstanding loan |
EMI at 8% |
EMI at 8.25% |
Monthly increase |
|---|---|---|---|
|
₹30 lakh |
₹25,093 |
₹25,562 |
₹469 |
|
₹50 lakh |
₹41,822 |
₹42,603 |
₹781 |
|
₹80 lakh |
₹66,915 |
₹68,165 |
₹1,250 |
|
₹1 crore |
₹83,644 |
₹85,207 |
₹1,563 |
Source: BankBazaar; illustrative calculations.
Should you increase your EMI or extend the tenure?
When interest rates rise, borrowers may be offered the option of maintaining their existing EMI and extending the repayment tenure, subject to the lender's terms. Alternatively, they can increase their EMI to keep the remaining tenure unchanged.
Keeping the EMI constant can provide immediate relief to monthly cash flow, but a longer repayment period generally means paying interest for more months. Increasing the EMI, if affordable, can help limit the additional interest cost.
Borrowers should assess their monthly income, essential expenses, emergency savings and other loan commitments before choosing. Those with sufficient financial flexibility may consider a higher EMI, while borrowers facing cash-flow constraints should discuss available options with SBI.
What should borrowers check?
Home loan customers should confirm their revised interest rate, outstanding principal, remaining tenure and next reset date with the bank. They should also check whether the rate revision changes their EMI or extends the repayment period.
The key is to compare the long-term interest cost with the immediate impact on monthly finances. Reviewing the revised loan schedule promptly can help borrowers make an informed repayment decision rather than allowing a rate increase to extend their debt burden without scrutiny.
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