SBI MCLR Rates Hiked: State Bank of India (SBI) has raised its lending rates on several loan tenures from October 15, 2026. The bank has increased its Marginal Cost of Funds Based Lending Rate (MCLR) by 15 basis points on five tenures. The overnight and one-month rates haven’t changed.
The new rates could make some SBI loans more expensive. The bank has raised its one-year MCLR from 8.70% to 8.85%. Its three-year rate has also gone up from 8.80% to 8.95%. But the change won’t affect every borrower’s EMI straight away. It depends on the loan terms and when the interest rate is due for revision.
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The move comes after the Reserve Bank of India (RBI) raised the repo rate by 25 basis points to 5.50% on October 7, 2026. The repo rate is the rate at which the RBI lends money to banks. When this rate changes, it can also affect the interest rates banks charge their customers.
SBI’s revised rates apply to different loan tenures, from overnight borrowing to three-year periods. The bank has kept the shortest two rates unchanged but raised the other five by 0.15 percentage points.
| Loan tenure | Existing rate | Revised rate |
|---|---|---|
| Overnight | 7.85% | 7.85% |
| One month | 7.85% | 7.85% |
| Three months | 8.25% | 8.40% |
| Six months | 8.60% | 8.75% |
| One year | 8.70% | 8.85% |
| Two years | 8.75% | 8.90% |
| Three years | 8.80% | 8.95% |
Source: State Bank of India.
People with home loans or other loans linked to MCLR may have to pay more interest after the new rates take effect. But everyone’s EMI won’t increase straight away. It depends on how much loan is left, how long they still have to repay it and when the bank changes their interest rate.
MCLR stands for Marginal Cost of Funds Based Lending Rate. It’s a rate banks use to decide the interest charged on certain loans. When a bank’s borrowing costs go up, it may raise its MCLR too. This can lead to higher interest rates for customers whose loans are linked to MCLR.
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Before making any changes to your monthly budget, check your loan agreement or contact SBI to find out when the new rate will apply to your account.
People who have money in fixed deposits (FDs) may be hoping for higher interest rates. But SBI Chairman C S Setty has said banks are unlikely to raise deposit rates over the next two to three months. This is because banks already have enough money available.
Setty said, “I believe that next two-three months, there may not be any rate action on the deposits because we have sufficient liquidity in the system,”.
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