State Bank of India has announced an upward revision in several of its primary lending benchmarks, raising the overall borrowing cost across floating-rate retail and commercial loans. The revision touches key external and internal lending benchmarks, including the External Benchmark Linked Lending Rate (EBLR), the Repo Linked Lending Rate (RLLR), and several key tenors under the Marginal Cost of Funds Based Lending Rate (MCLR). With these changes taking immediate effect, borrowers servicing floating-rate loans face higher interest burdens that can either expand their equated monthly installments (EMIs) or stretch their remaining repayment schedules.
Revisions in EBLR and RLLR Benchmarks
Under the revised structure, the bank has lifted the EBLR from 7.90% to 8.15%. Alongside this revision, the RLLR has also moved up from 7.50% to 7.75%. Both of these benchmark rate revisions came into force starting October 15, 2026. External benchmark regimes are closely tied to broader central rate movements, directly influencing home loan portfolios and other indexed consumer debt. Whenever such benchmark levels move upward, borrowing households generally witness either an immediate jump in their monthly payment outflow or an elongation of the repayment tenure. The exact outcome for an individual account depends on reset frequency dates and specific loan covenant agreements.
Tenor-Wise Movement in MCLR Structure
State Bank of India has implemented an increase of 0.15 percentage points across several MCLR tenors while holding very short-term rates untouched. The overnight tenor and the one-month tenor have both been retained without change at 7.85%. Beyond that immediate horizon, the three-month rate has been revised upward from 8.25% to 8.40%, and the six-month tenor has moved from 8.60% to 8.75%.
For annual and multi-year borrowing, the one-year MCLR, which serves as a widely referenced benchmark for consumer and business lines of credit, has been increased from 8.70% to 8.85%. The two-year rate now stands at 8.90% after moving up from 8.75%, while the three-year tenor has climbed from 8.80% to 8.95%. Across all tenors running from three months to three years, the increase stands uniformly at 0.15 percentage points.
Understanding MCLR Mechanics and Fixed Deposit Status
The Marginal Cost of Funds Based Lending Rate represents the minimum internal benchmark below which a regulated bank cannot typically price an advance. The formula accounts for the incremental cost of acquiring capital, statutory requirements such as cash reserve obligations, and everyday operating expenses. The actual interest charged to a borrower reflects this baseline plus any spread determined by credit risk and product characteristics.
While borrowing has become more expensive, the bank has maintained status quo on its fixed deposit rates. General domestic depositors continue to access rates spanning 3.05% to 6.60%, whereas senior citizens retain an enhanced yield bracket ranging between 3.55% and 7.10%. These deposit rates have remained consistent since December 15, 2025.
