- SBI hiked some MCLR rates by 0.15%.
- The increased rates came into effect from 15 October 2026.
- Increase in MCLR rates for three months, six months, one year and beyond
State Bank of India, the largest state-owned bank, has dealt a major blow to borrowers. SBI has increased its MCLR rate. MCLR is the base rate at which a bank lends. It has increased by 0.15%. These new rates are effective from October 15. Now borrowing from SBI is going to be more expensive than before. State Bank Of India Mclr Interest Rate:
How much increase on which loan?
SBI has not hiked all rates. One-day and one-month MCLR has been kept unchanged. There is no change in it. But if your MCLR tenure is 3 months, 6 months, 1 year or more then there is an increase of 0.15%. That means interest has increased by 15 basis points. Although it may sound small, a large loan can make a difference of thousands of rupees a month.
Who will be hit?
Not everyone will be affected. Only those who have taken loans from SBI at MCLR will suffer. Nowadays many home loans, car loans, personal loans are linked to MCLR. They are called floating rate loans. The interest of such people will increase. But if your loan is linked to EBLR or RLLR i.e. Repo Rate then you need not worry. This increase will not affect you. People on EBLR are relieved.
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Will your EMI increase?
As the MCLR increases, the EMI will definitely increase. Two things can happen. Either way you get more per month EMI have to be paid or the bank will extend your loan tenure. That means earlier the loan was 20 years but now it will be 21 years. But the EMI will not increase immediately. Many loans have a reset period. That means the interest changes every 6 months or every year. So the old rate will be applicable till your reset date. After that a new increased rate will apply. And importantly, this increase is not permanent, it can be temporary.
RBI also hiked rates
A week before this, on October 7, 2026, the RBI had also increased its repo rate. Increased by 25 basis points to 5.50%. Repo rate is the rate at which RBI lends money to banks. As RBI hiked rates, banks found money more expensive. That's why big banks like SBI are increasing their rates. Other banks are also likely to increase rates in the next few days.
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What is MCLR Many people do not know what MCLR is. In simple terms, this rate is determined by the cost that the bank incurs to raise money. The bank's profit and expenses are all added to it. This is a base rate. Your loan is linked to this rate. So when MCLR increases, your loan becomes expensive and when MCLR decreases, loan becomes cheaper. So if you are a borrower of SBI and your loan is above MCLR, go to the bank and inquire once. Be sure to ask how much your new EMI will be and if you can shift to EBLR.