Loan News · 18 October 2026 · 2 min read
In short: After the RBI raised the repo rate to 5.50% on 7 October, the two biggest lenders moved in opposite directions. SBI raised its MCLR by 0.15% on most tenures from 15 October 2026. HDFC Bank cut its MCLR by 0.05% to 0.15% from 7 October 2026.
The new rates
| Tenure | SBI (from 15 Oct) | HDFC Bank (from 7 Oct) |
|---|---|---|
| 3 months | 8.25% → 8.40% | 8.05% → 7.95% |
| 6 months | 8.60% → 8.75% | 8.25% → 8.15% |
| 1 year | 8.70% → 8.85% | 8.35% → 8.30% |
| 2 years | 8.75% → 8.90% | 8.45% → 8.40% |
| 3 years | 8.80% → 8.95% | 8.60% → 8.55% |
SBI left its overnight and one-month MCLR unchanged. HDFC Bank also cut its overnight rate to 7.80% and its one-month rate to 7.75%.
Will your EMI change?
Only if your loan is linked to MCLR, and only at your loan’s next reset date, which is usually once every 6 or 12 months. Most home loans taken since October 2019 are linked to the repo rate instead, so they follow the RBI’s hike rather than these MCLR changes.
For an SBI borrower with a ₹30 lakh loan and 30 years left, the 0.15% rise works out to roughly ₹350 to ₹370 more a month, or about ₹4,200 to ₹4,400 a year. Banks sometimes extend the tenure instead of raising the EMI, which costs more in total interest.
What you can do
- Check your loan statement or app for the benchmark (MCLR, repo or EBLR) and the next reset date.
- If you are on an old MCLR loan with a high spread, ask your bank about switching to a repo-linked rate. There is usually a one-time fee.
- If the bank extends your tenure, ask for a higher EMI instead if you can afford it, to keep total interest down.
See how a rate change affects your EMI with our Rate Change Calculator.
Sources
- Free Press Journal: SBI hikes lending rates by 15 basis points (15 October 2026)
- Free Press Journal: HDFC Bank cuts lending rates despite RBI hike (7 October 2026)
This is a news summary for education, not financial advice. Rates and terms change; confirm the latest details with your bank or the official source.