SBI MCLR increased by 15 basis points across five tenors effective October 15, 2026, raising State Bank of India’s marginal cost of funds-based lending benchmarks for periods from three months to three years. The bank left its overnight and one-month benchmarks unchanged, along with term deposit rates.
Key Takeaways
- Five lending benchmarks rose by 0.15 percentage points from October 15, 2026.
- The one-year MCLR increased to 8.85%, from 8.70%.
- Overnight and one-month MCLRs remained at 7.85%; term deposit rates were unchanged.
Table of Contents
- SBI MCLR changes cover three months through three years
- Lending benchmark increase follows RBI policy move
- Conclusion
SBI MCLR changes cover three months through three years
SBI’s October 2026 MCLR schedule sets out identical 15-basis-point increases across the five affected tenors. The revised benchmarks range from 8.40% for three months to 8.95% for three years.
The changes are selective rather than a rise across every maturity. The two shortest benchmarks—overnight and one month—remain at their previous levels. A 15-basis-point increase means a rise of 0.15 percentage points, not 15%.
For a borrower, the relevant comparison is the benchmark specified in the loan agreement. A change to the published MCLR does not by itself establish the date or size of a change in an individual loan payment; those depend on the applicable loan terms and reset arrangements.
| Item | Details |
|---|---|
| Overnight | 7.85% previously; 7.85% from October 15, 2026. |
| One month | 7.85% previously; 7.85% from October 15, 2026. |
| Three months | 8.25% previously; 8.40% from October 15, 2026. |
| Six months | 8.60% previously; 8.75% from October 15, 2026. |
| One year | 8.70% previously; 8.85% from October 15, 2026. |
| Two years | 8.75% previously; 8.90% from October 15, 2026. |
| Three years | 8.80% previously; 8.95% from October 15, 2026. |
Lending benchmark increase follows RBI policy move
The revision follows the Reserve Bank of India’s October 7, 2026, decision to increase the repo rate by 25 basis points, from 5.25% to 5.50%. SBI’s increase in the five affected MCLRs was smaller than that policy-rate move.
The repo rate and MCLR are separate rates: the former is a central-bank policy rate, while the latter is a bank lending benchmark. The timing does not mean every SBI lending rate increased by the same amount.
Term deposit rates were left unchanged, so the announced lending-benchmark increase was not accompanied by a corresponding rise in those deposit rates.
Conclusion
The revised benchmarks took effect on October 15, 2026. For affected borrowers, the next relevant checkpoint is the loan’s contractual reset, rather than an assumed immediate change in repayments.
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