SBI raises EBLR and RLLR by 25 bps: vehicle-loan checks

By Tushita · 15 Oct, 2026

State Bank of India raised EBLR and RLLR by 25 bps from 15 Oct 2026 and lifted select MCLR tenors. Vehicle-loan borrowers should check benchmark, spread and reset date before budgeting EMI.

SBI raises EBLR and RLLR by 25 bps: vehicle-loan checks

State Bank of India (SBI) has raised its External Benchmark Linked Rate (EBLR) and Repo Linked Lending Rate (RLLR) by 25 basis points, effective 15 October 2026. The bank has also raised several MCLR tenors, so vehicle-loan borrowers need to check how their loan is priced before estimating the effect on their EMI.

The change does not automatically alter every car or two-wheeler loan by the same amount. The result depends on whether the contract is fixed or benchmark-linked, the spread charged over the benchmark, the loan’s reset date and whether the lender changes the EMI, the remaining tenure or both.

Key takeaways

SBI’s EBLR moved from 7.90% + CRP + BSP to 8.15% + CRP + BSP from 15 October 2026.
SBI’s RLLR moved from 7.50% + CRP to 7.75% + CRP on the same date.
Three-month to three-year MCLR tenors rose by 15 basis points; overnight and one-month MCLR stayed at 7.85%.
A benchmark-linked vehicle loan can see a higher interest rate after its contractual reset, but the pass-through is not a universal 25-basis-point change for every borrower.

What SBI changed from 15 October 2026

SBI’s rate sheet, updated on 14 October 2026, lists the following changes for rates effective 15 October 2026:

Benchmark	Existing rate	Revised rate	Change
EBLR	7.90% + CRP + BSP	8.15% + CRP + BSP	+25 bps
RLLR	7.50% + CRP	7.75% + CRP	+25 bps

These are benchmark components, not a single final vehicle-loan quote. CRP means the credit-risk premium and BSP means the business-strategy premium; the applicable spread and borrower profile determine the rate payable on an individual account.

SBI also revised selected MCLR tenors effective 15 October 2026. The bank left its overnight and one-month MCLR unchanged at 7.85%, while the longer tenors moved as follows:

MCLR tenor	Existing rate	Revised rate	Change
Three months	8.25%	8.40%	+15 bps
Six months	8.60%	8.75%	+15 bps
One year	8.70%	8.85%	+15 bps
Two years	8.75%	8.90%	+15 bps
Three years	8.80%	8.95%	+15 bps

How this can affect vehicle-loan EMIs

The immediate question for a car or two-wheeler owner is not simply whether SBI changed a benchmark. It is which benchmark appears in the loan agreement and when the account is repriced. External-benchmark-linked loans generally transmit a benchmark change according to their reset terms, while MCLR-linked loans follow the reset period stated in the contract. A fixed-rate product needs to be read against its own conditions.

The Economic Times reported that the EBLR and RLLR revision follows the Reserve Bank of India’s 25-basis-point repo-rate increase and said borrowers on affected benchmarks can face higher EMIs. The Indian Express similarly reported that the RBI’s 7 October 2026 move to 5.50% could feed into vehicle loans, with the exact effect depending on the benchmark and lender’s reset process.

Illustration for a ₹8 lakh outstanding balance

For a simple illustration, a 0.25 percentage-point annual increase on an outstanding principal of ₹8,00,000 equals ₹2,000 of interest over a full year before accounting for monthly amortisation: ₹8,00,000 × 0.25%. This is not an EMI quote. The actual change can be different because the balance declines, the remaining tenure varies, and the lender may adjust tenure rather than the monthly instalment.

Borrowers comparing a new vehicle purchase can use the car-loan EMI and tenure guide to understand how rate, tenure and prepayment assumptions change the repayment picture.

What vehicle borrowers need to check

Benchmark and rate type: check whether the agreement names EBLR, RLLR, MCLR or a fixed rate.
Spread and concessions: record the contractual spread over the benchmark and any concession that can expire or change with eligibility.
Reset date: a rate published on 15 October 2026 may not change an account on that exact day if its contract has a later reset cycle.
EMI or tenure treatment: ask for the revised amortisation schedule and see whether the change is reflected in the instalment, the remaining months or both.
Total running cost: financing is only one part of ownership. A buyer comparing monthly affordability can also estimate fuel use with the fuel cost calculator.

What the RBI move changes — and what it does not

The RBI raised the policy repo rate by 25 basis points to 5.50% on 7 October 2026, according to Reuters and The Indian Express. That policy rate is a banking-system benchmark; it is not the same thing as the final interest rate on a vehicle loan. The SBI revision shows how a bank can pass a benchmark change into its own published rates, but other lenders may use different pricing, spreads and reset dates.

This also means a borrower should not use the 25-basis-point headline as a universal estimate of the EMI change. The contract, outstanding principal and repayment schedule are the relevant documents for an individual account. For the operating-cost side of a purchase or trip, current city rates can be checked through the live fuel prices hub.

Reader takeaway

SBI’s 15 October 2026 revision makes the benchmark and reset clause more important for anyone financing a vehicle. The practical next step is to compare the old and revised rate shown on the loan account, verify the spread and reset date, and request the updated repayment schedule before treating a new EMI figure as confirmed.