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Home Loans May Get Costlier As SBI Capital Warns Interest Rates Could Hit 9 Percent

News18•10-10-2026, 18:43

•SBI Capital reports that the recent repo rate hike by the Reserve Bank of India is only the beginning and rates could rise by another 1 percent.
•Home loans currently charged at 8 percent interest could see their rates surge up to 9 percent in the coming quarters.
•Rising retail and wholesale inflation are forcing the central bank to adopt a hawkish stance and continue hiking interest rates.
•Retail inflation is expected to peak during the third quarter of the financial year 2027 before gradually coming down.

SBI Capital estimates that upcoming repo rate hikes could cause home loan interest rates currently at 8 percent to increase and reach 9 percent.

The RBI is increasing interest rates to control continuously rising retail inflation and combat inflation pressures.

Retail inflation is projected to peak in the third quarter of the financial year 2027 before coming down below 5 percent by the financial year 2028.