The Reserve Bank of India (RBI) has increased the repo rate by 25 basis points to 5.50% following its monetary policy review meeting on October 2026. RBI Repo Rate Hike May Increase EMIs on Home Loans.
Following the RBI’s decision, several major public sector banks in India have raised their Repo-Linked Lending Rates (RLLR), potentially increasing the monthly instalments (EMIs) on home loans and other borrowings.
The State Bank of India (SBI) has raised its External Benchmark Linked Lending Rate (EBLR) to 8.15% and its Repo-Linked Lending Rate (RLLR) to 7.75%, effective October 15. Punjab National Bank and Bank of India have revised their lending rates to 8.35%, while Canara Bank has set its rate at 8.25% and Bank of Baroda at 8.15%.
Indian Bank has also increased its repo-linked lending rate to 8.20%. These interest rate hikes could increase the monthly EMIs or extend the repayment tenure for existing borrowers, depending on their loan terms and the options offered by their banks. Customers planning to take out new home loans may also face higher borrowing costs.
However, the benchmark lending rate does not represent the final interest rate charged to a borrower. Financial experts advise customers to contact their respective banks to verify the applicable interest rate, processing fees and repayment terms before making a decision.
