SBI MCLR and EBLR Hike From 15 October 2026: New Rates and How Much Your EMI Rises

Rohit, a 38-year-old IT professional in Hyderabad, has ₹50 lakh left on his SBI home loan with 20 years to go. From Thursday, 15 October 2026, the benchmark that loan is linked to went up by 0.25 percentage points. If his rate rises from 7.75% to 8%, his EMI goes up by about ₹775 a month. State Bank of India raised its external benchmark lending rate (EBLR) and repo-linked lending rate (RLLR) by 25 basis points, and its MCLR by 15 basis points on most tenors. Here is the SBI MCLR and EBLR hike in detail, who is affected and when, and what you can do.

SBI MCLR and EBLR hike: the new rates

External benchmark rates (most home loans since 2019)

CRP is the credit risk premium and BSP the business strategy premium, which depend on your loan and profile. Source: SBI’s EBLR page.

MCLR (older loans and many other products)

Source: SBI’s MCLR page, “effective from 15th October 2026”, last updated 15 October 2026.

Why rates went up

The RBI’s Monetary Policy Committee raised the repo rate by 25 basis points to 5.50% on 7 October (see our MPC report). Loans linked to an external benchmark such as the repo rate move with it. SBI’s EBLR and RLLR rose by exactly 25 basis points, the same as the repo increase.

MCLR is based on a bank’s own cost of funds, so it moves more slowly and often by less than the full amount. SBI raised it by 15 basis points for tenors of three months and above.

SBI is not alone. Indian Overseas Bank raised its MCLR by 5 basis points across six tenors from 15 October, keeping its one-month rate at 8.25%, CNBC-TV18 reported. More banks are likely to revise rates in the coming weeks; check your own lender’s site.

How much your EMI could rise

Our calculations, assuming the full remaining tenure and the full benchmark change passed through. Your actual rate depends on your spread over the benchmark.

Many banks keep the EMI the same and extend the tenure instead. On the ₹50 lakh example, keeping the old EMI of ₹41,047 at 8% would stretch the loan by about 11.6 months, by our calculation. That keeps the monthly outgo steady but adds a year of payments.

The cost over the whole loan

A ₹775 rise in EMI looks small month to month. Over the full term, it adds up. On the same ₹50 lakh, 20-year loan, total interest at 7.75% comes to about ₹48.51 lakh. At 8%, it is about ₹50.37 lakh, roughly ₹1.86 lakh more, by our calculation, if the rate stays at 8% for the whole period. Rates can go down as well as up over 20 years, so treat this as an illustration of what a 0.25-point change is worth, not a forecast.

Other loans that may move

• Loans against property and some business loans are often linked to EBLR or MCLR and will reprice on their reset dates.
• Car and personal loans are usually fixed for the full tenure at the time you borrow, so existing borrowers are generally not affected. New borrowers may see higher rates.
• Education loans are often floating and linked to a benchmark; check your sanction letter.
• Credit cards are not linked to these benchmarks.

When will your loan be affected?

• EBLR or RLLR loans: the new rate applies from your loan’s next reset date. Banks usually reset external benchmark loans at least once every three months; your sanction letter says when.
• MCLR loans: the rate changes on your reset date, usually every six months or a year, depending on the MCLR tenor your loan is linked to.
• Fixed-rate loans: not affected during the fixed period.
• New loans: priced on the new benchmarks from 15 October. SBI’s website shows home loans starting from 7.50% a year with effect from 15 October 2026, subject to terms.

Savers: no change in SBI FD rates yet

SBI’s retail fixed deposit rates on its website still show “w.e.f. 15/12/2025” at the time of writing. So the loan rate increase has not been matched by a deposit rate increase so far. Some NBFCs and smaller banks have raised deposit rates since the RBI hike; see our report on recent FD rate hikes.

What borrowers can do

1. Find your benchmark. Check your loan statement or sanction letter: EBLR, RLLR or MCLR, and your spread.
2. Choose EMI or tenure. If the bank extends your tenure, you can ask to raise the EMI instead, which reduces total interest.
3. Prepay if you have surplus cash. Floating-rate home loans to individuals carry no prepayment penalty under RBI rules. Even small part-payments early in the loan cut interest significantly.
4. Still on MCLR? Compare your rate with what you would pay on EBLR. Our guide on switching from MCLR to EBLR explains the costs and trade-offs.
5. Taking a new loan? Read the Key Facts Statement for the annual percentage rate before signing.

Our explainer on how repo rate hikes affect EMIs has more worked examples.

Here are short answers to the questions we are getting.

FAQs

What is SBI’s new EBLR?

8.15% plus CRP and BSP, effective 15 October 2026, up from 7.90%.

What is SBI’s one-year MCLR now?

8.85%, up from 8.70%, effective 15 October 2026.

Will my SBI home loan EMI go up immediately?

Only from your loan’s next reset date. The bank may also extend your tenure instead of raising the EMI.

Has SBI raised FD rates too?

Not as of 15 October; its retail FD rate card is still the one effective from 15 December 2025.

Takeaway: The SBI MCLR and EBLR hike from 15 October adds 0.25 points to repo-linked loans and 0.15 points to most MCLR tenors. On a ₹50 lakh, 20-year loan, that can mean about ₹775 more a month. Check your reset date and consider prepaying if you can.