Submitted by admin on November 6th, 2026
SBI has updated the home loan lending rates after the Reserve Bank of India (RBI) hiked its repo rate by 25 basis points in October 2026. The new rates, effective October 15, 2026, could raise loan costs for existing borrowers with floating-rate home loans linked to repo rates and for individuals looking to buy a home.
SBI has raised its External Benchmark Linked Lending Rate (EBLR) to 8.15%. This is a super costly rate since there is also an applicable Credit Risk Premium (CRP) and Business Strategy Premium (BSP). It has also raised its Repo Linked Lending Rate (RLLR) from 7.50% to 7.75% along with CRP. The loan premiums and loan terms will affect the actual interest rate that is offered to a borrower.
If your home loan is for a home purchase, it is critical that you compare interest rates, estimate any house loan EMI changes and check the repayment options before you finalize a long-term loan. Current borrowers should also find out when their new rate comes into effect.
The SBI home loan rate hike was made after RBI hiked its repo rate by 25 basis points. SBI has updated its benchmark lending rates accordingly and any loans availed that are tied to the benchmarks can be impacted by this change.
The higher the interest rate, the more interest will be paid over the term of the loan. It depends on the remaining outstanding principal, outstanding period and loan terms. The borrowers might find that their EMI is higher or the repayment period is longer.
SBI EBLR home loan rate is linked to an external benchmark, which means that changes in the external benchmark rates will affect it. It will have an impact on the interest rates applicable to eligible floating rate home loans.
This means that the EBLR for SBI will be 8.15% from October 15, 2026, along with the CRP and BSP. The final rate charged to an individual borrower may differ depending on the applicable premiums, eligibility and loan conditions.
SBI Repo Linked Lending Rate is directly tied to the RBI repo rate, with the credit risk premium applied as appropriate.
As of October 15, 2026, SBI revised its RLLR from 7.50% to 7.75%, plus CRP. People who take loans based on the updated benchmark could be impacted by this change.
Any such announcement by RBI and SBI should be watched by borrowers because such rates are linked to the repo rates and this rate fluctuates with the monetary policy.
The amount by which the SBI home loan EMI will increase will depend on the outstanding loan amount, the prevailing interest rate and the remaining tenure. The method used by the bank to adjust the interest rate.
For instance, if the borrower has a high balance and a long remaining term on the loan, a higher interest rate could result in a significantly higher amount of interest being paid over time. It depends on the terms of the loan and the initial EMI impact could be less or more.
If feasible, a higher EMI will help to avoid the repayment period from getting longer and also lower the interest burden.
If a home loan is too costly for the borrower to afford, one of the options is to switch to another home loan. It is known as a home loan balance transfer. It means transferring the outstanding loan amount from the previous lender to another lender with better loan terms.
If you are comparing the interest rate, processing fees, legal fees, valuation expenses, remaining loan term, foreclosure charges, and other charges of the alternative lender then it is prudent before transferring an SBI home loan.
Home loan balance transfer: SBI’s lower advertised rates do not necessarily mean lower overall rates. Find out how much money might be saved over the rest of the term and deduct transfer costs from the savings.
The RBI repo rate has an impact on the interest rates of banks. If you are holding a home loan that falls under the eligible range of the repo rate, then one of the repercussions may be an increase in the interest rate, higher EMIs, or an extended repayment term.
The overall extra expense relies on the staying duration of the loan and the its framework, as well as the outstanding equilibrium.
But not all home loans react the same. Loans may have different revision schedules based on the various benchmarks.
These SBI home loan rates for October 2026 are only averages. It is not all home loan customers who will receive this interest rate. The individual rates vary according to the applicable loan scheme, borrower profile and premiums.
SBI’s published home loan card rate is different from its benchmark rates. The applicants should check the available rate for their loan product and not take the EBLR or RLLR as the final cost of their loan.
The borrowers should compare the total repayment amount, monthly EMI and charges prior to applying for a home loan or refinancing an existing home loan. These numbers can be useful for them to consider when determining a repayment plan for their budget.
After the repo rate hike, SBI rates of both EBLR and RLLR have been revised by SBI from October 15, 2026. The EBLR increased to 8.15% plus CRP and the RLLR increased to 7.75% plus CRP.
In October 2026, SBI EBLR is 8.15% plus CRP and BSP. Its RLLR is 7.75% plus CRP. These are the standard prices; the ultimate price charged for a home loan could vary.
If the RBI hikes its repo rate, interest rates on eligible home loans with floating rates linked to the repo rate will also rise. This can result in a higher EMI for a longer period and an increase in interest cost.
Not always, as the terms of the loan may vary based on the benchmark and resets applicable, and how the change is made by SBI. You can see your loan statement or call the bank to be sure what day the new rate is going into effect.
Each payment could be applied more to interest if your EMI doesn’t change, reducing the amount you pay off the loan. The term of the loan may be extended depending on the loan. Kindly refer to the revised repayment schedule with SBI.
An increase is based on the outstanding principal, remaining term and the current rate of interest. To do this, you will need to calculate the EMI at both rates, keeping the remaining duration and outstanding balance the same.
If you can save more with a lender that offers a more competitive and effective rate, a balance transfer may be a good idea, despite the transfer fee. Before making a decision, consider research processing costs, legal fees, the rate of interest and the time period.
EBLR stands for External Benchmark Linked Lending Rate and RLLR stands for Repo Linked Lending Rate. The RBI repo rate is explicitly mentioned as its reference rate by the RBI LLR. SBI keeps its two LR’s (EBLR and RLLR) apart as separate lending rates and premiums will be applicable to the final lending rate to the borrower.
Consider your repayment period, make a partial prepayment on principal if you can afford it, or compare refinancing quotes, or discuss with your lender what your options are. The longer the tenure the lesser is the monthly EMI but more is the interest to be paid.
DailyFinServ can help the borrowers to assess their home loan choices. It shows the different ways of repayment and the factors they should keep in mind while taking a second thought on their home loan balance transfer/EMI.
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