SBI home loan rates have increased by 25 basis points for borrowers whose loans are linked to the bank’s external benchmark lending rate (EBLR) or repo-linked lending rate (RLLR), with the revised rates effective from 15 October 2026. The increase may either raise monthly EMIs or extend the repayment period for eligible borrowers, depending on the option chosen and the bank’s terms.
The State Bank of India’s revised rates apply only to loans connected to the affected external benchmarks and not automatically to every home-loan product. The impact on an individual borrower will depend on the outstanding principal, applicable interest rate and remaining tenure.
Following the revision, interest rates on regular SBI home loans are in the range of 7.50% to 8.80%, according to the report. Rates for SBI Home Loan Maxgain are between 8% and 9.30%. Top-up home-loan rates range from 8% to 10.75%, while top-up overdraft loan rates are between 8.50% and 11.25%.
The increase means borrowers with outstanding loans may have to pay more if they retain the existing repayment period. A calculation cited from BankBazaar shows the effect of a 25-basis-point rise when the interest rate moves from 8% to 8.25% and 20 years remain on the loan. For an outstanding 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 about Rs 1,563 under the same assumptions.
The calculations are illustrations based on a 20-year remaining tenure and an 8% starting interest rate. Actual changes may differ depending on the borrower’s loan structure, outstanding balance, revised rate and remaining repayment period.
Borrowers may generally face a choice between increasing the monthly instalment and extending the repayment tenure, subject to SBI’s applicable conditions. Keeping the EMI unchanged can reduce the immediate pressure on monthly cash flow, but a longer tenure may result in interest being paid over a greater number of months. Increasing the EMI while retaining the existing tenure can limit the additional interest cost for borrowers who have sufficient monthly financial capacity.
The change places renewed attention on how benchmark-linked home loans transmit changes in policy-linked borrowing costs to household budgets. Borrowers with loans connected to SBI’s EBLR or RLLR will need to review their revised repayment schedule and discuss available options with the bank before deciding whether to alter the EMI or tenure.
