SBI home loan rates have increased by 25 basis points from 15 October 2026, raising the borrowing cost for customers whose loans are linked to the bank’s external benchmark or repo-linked lending rate. The increase may either push up monthly EMIs or extend the repayment period, depending on the option selected by the borrower and the bank’s applicable terms.
The State Bank of India’s revised external benchmark-linked rate and repo-linked lending rate apply to loans connected to those benchmarks. The increase does not automatically apply to every SBI home loan, as the impact depends on the benchmark and pricing structure attached to an individual loan account.
According to the rates reported by Aaj Tak Business, regular SBI home loans are now priced between 7.50% and 8.80%. Home Loan Maxgain rates range from 8% to 9.30%, while top-up home loans carry rates between 8% and 10.75%. Top-up overdraft loan rates are reported to range from 8.50% to 11.25%.
The financial impact will vary according to the borrower’s outstanding principal, applicable interest rate and remaining tenure. A calculation cited from BankBazaar shows the effect of a 25-basis-point increase, assuming an interest rate moves from 8% to 8.25% and the remaining repayment period is 20 years.
On a remaining loan balance of Rs 50 lakh, the monthly EMI would rise by about Rs 781 if the tenure remains unchanged. For a Rs 1 crore outstanding loan, the monthly increase would be approximately Rs 1,563 under the same assumptions. These figures are illustrative calculations based on a 20-year remaining term and do not represent the exact revised EMI for every SBI borrower.
Borrowers may have two broad repayment options, subject to SBI’s terms. They may keep the EMI broadly unchanged and allow the repayment period to increase, or retain the existing tenure and pay a higher monthly instalment. Keeping the EMI stable can reduce the immediate pressure on monthly cash flow, but a longer tenure generally means interest is paid over more months.
For households with sufficient monthly income and financial flexibility, increasing the EMI while retaining the existing tenure may limit the additional interest burden. Borrowers facing tighter cash flows may instead need to discuss the available tenure and repayment options with SBI before making a decision.
The rate revision also highlights how benchmark-linked home loans transmit changes in the lending environment directly to household budgets. The actual effect on each customer will depend on the outstanding principal, the rate applicable to the account and the remaining loan term. SBI’s revised EBLR-linked rates were reported as effective from 15 October 2026.
