SBI has raised its external benchmark-linked lending rate by 25 basis points to 8.15%, potentially increasing monthly repayments for floating-rate home-loan customers.
State Bank of India has raised its external benchmark-linked lending rate by 25 basis points, a move that is likely to leave some home-loan customers paying more each month. Mint reported that the revised rate took effect on 15 October 2026, lifting SBI’s EBLR to 8.15% and pushing up the pricing on several floating-rate loan categories tied to that benchmark.
Under the new structure, regular home loans now range from 7.50% to 8.80%, while Home Loan Maxgain accounts are priced between 8% and 9.30%. Top-up loans now carry rates of 8% to 10.75%, and top-up overdraft loans are set between 8.50% and 11.25%, according to reporting by Mint and Business Today. The change follows a broader round of lending-rate resets at large banks this month, with Mint noting that SBI was among several lenders adjusting benchmark rates in October.
For borrowers, the impact depends on the size of the outstanding loan and the repayment structure chosen after the reset. Business Today, citing illustrative calculations from BankBazaar, said a 25 basis point rise on a loan with 20 years left could add about ₹469 a month on a ₹30 lakh loan, ₹781 on a ₹50 lakh loan, ₹1,250 on an ₹80 lakh loan and about ₹1,563 on a ₹1 crore loan, assuming the rate moves from 8% to 8.25%. The same estimates show that the higher the principal, the more noticeable the jump in monthly outgo.
Borrowers facing a rate reset usually have two practical options: keep the EMI unchanged and accept a longer repayment period, or raise the EMI and preserve the existing tenure. The first option may ease cash flow in the short term, but it usually increases the total interest paid over the life of the loan. The second can reduce the extra interest burden, provided the household budget can absorb the higher monthly instalment. Borrowers should check their revised rate, remaining principal, tenure and reset date before deciding which route suits them best, according to the guidance discussed by Business Today.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
