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Loan Rates Hike: 7 Major Banks Raise Interest Rates After RBI Decision
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CNBC Awaaz•08-10-2026, 08:57
Loan Rates Hike: 7 Major Banks Raise Interest Rates After RBI Decision
- •RBI increased the repo rate by 0.25 percentage points, raising it from 5.25 percent to 5.50 percent effective October 8.
- •Seven major banks including Bank of Baroda, PNB, and Indian Bank have hiked their repo-linked lending rates by 25 basis points.
- •The hike will impact borrowers with floating-rate loans, potentially increasing monthly EMIs or loan tenures.
- •Borrowers should check with their banks regarding new repayment schedules, interest rates, and CIBIL score impacts.
Key Questions Answered
On October 7, 2026, the Reserve Bank of India increased the repo rate by 0.25 percentage points, raising it from 5.25 percent to 5.50 percent.
Following the RBI directive, several banks increased their repo-linked lending rates by 25 basis points effective October 8, 2026. For instance, Punjab National Bank raised its rate from 8.10 percent to 8.35 percent, and Bank of Baroda increased its rate to 8.15 percent.
Not necessarily, as it depends on whether your loan is linked to a floating rate, MCLR, or another benchmark, as well as individual loan terms. When a rate change applies, banks may increase your monthly installment, extend the loan tenure, or use a combination of both.
