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Your loan EMI just got costlier: PNB, Bank of Baroda, Indian Bank and four more lift repo-linked rates 25 bps after RBI hike
Seven listed banks told the exchanges on Wednesday evening that they have raised their repo-linked lending rates by 25 basis points, matching RBI's hike to 5.50%. Most changes take effect today, 8 October; Bank of India moved the same day. Here is what each bank filed, and what a quarter-point rise means for a typical home loan.
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What the banks filed (7 Oct 2026, under SEBI's disclosure rules):
| Bank | Benchmark | Old | New | Effective |
|---|---|---|---|---|
| Punjab National Bank | Repo Linked Lending Rate (RLLR) | 8.10% | 8.35% | 8 Oct |
| Bank of Baroda | Baroda Repo Based Lending Rate (BRLLR) | 7.90% | 8.15% | 8 Oct |
| Bank of India | Repo Based Lending Rate (RBLR) | 8.10% | 8.35% | 7 Oct |
| Indian Bank | Repo Linked Benchmark Lending Rate (RBLR) | 7.95% | 8.20% | 8 Oct |
| Indian Overseas Bank | Repo Linked Lending Rate (EBLR) | 8.10% | 8.35% | 8 Oct |
| Karur Vysya Bank | External Benchmark Rate – Repo (EBR-R) | 8.55% | 8.80% | 8 Oct |
| Tamilnad Mercantile Bank | RLLR | 8.25% | 8.50% | 8 Oct |
Every increase is exactly 25 basis points — the same as RBI's repo hike to 5.50% on Wednesday, 7 Oct (RBI decision). Bank of Baroda and Bank of India say their mark-up over repo is unchanged (2.65% and 2.85%); PNB says its MCLR and base rate are unchanged.
Takeaway: if your home, car or small-business loan is linked to the repo rate at these banks, your rate goes up by a quarter point from your next reset. Not investment advice.
Analysis
Why this happened overnight
Since 1 October 2019, RBI has required banks to link all new floating-rate personal and retail loans (housing, auto and others) and floating-rate loans to micro and small enterprises to an external benchmark — for these banks, the repo rate. RBI's rule says the rate on such loans must be reset at least once every three months, so the hike reaches each borrower at their loan's next reset date. That is why the hike reached borrowers within hours. Older loans linked to MCLR or base rate do not move automatically; PNB says both are unchanged for now.
What 25 bps means for a typical loan (illustration)
Capital Chronicle arithmetic, standard EMI formula. These are illustrations, not any bank's quoted rate — your actual rate is the benchmark plus your loan's spread.
| Loan | Tenure | Rate before → after | EMI before → after | Extra per month |
|---|---|---|---|---|
| ₹50 lakh home loan | 20 years | 8.50% → 8.75% | ₹43,391 → ₹44,186 | ≈ ₹795 |
| ₹30 lakh home loan | 20 years | 8.50% → 8.75% | ₹26,035 → ₹26,511 | ≈ ₹477 |
| ₹10 lakh car loan (floating) | 5 years | 9.50% → 9.75% | ₹21,002 → ₹21,124 | ≈ ₹122 |
Some lenders keep the EMI unchanged and lengthen the remaining tenure instead. Check your bank's reset communication to see which applies to your loan.
Our explainer How RBI's rate hike reaches your EMI and FD walks through the plumbing from repo to your loan, with a separate illustration (₹50 lakh, 20 years, 9.00% → 9.25%, about ₹807 more a month). The two examples differ only because the starting rate differs.
Who has not filed yet
As of about 8:30 a.m. IST on 8 October, State Bank of India, HDFC Bank, ICICI Bank, Canara Bank and Union Bank of India had not posted a lending-rate change on NSE. Banks also publish their benchmark rates on their own websites, so the absence of an NSE filing does not by itself mean no change. We will update this story as filings come in.
Deposits are the other half
Higher lending rates usually come before higher deposit rates. None of the seven filings mentions fixed-deposit rates. RBI is also draining cash from the banking system — it has set a ₹2 lakh crore 29-day reverse repo auction for this morning (Thursday's markets set-up) — which tends to push up the rates banks pay for deposits over time (our read).
What to watch
- Rate filings from SBI and the large private banks
- Any MCLR revisions at banks' next monthly reviews
- Fixed-deposit rate changes in the coming weeks
- September CPI on Mon 12 Oct
Not investment advice. No politics.
Sources
- Punjab National Bank — Change in Interest Rates (RLLR), filed 7 Oct 2026 — https://nsearchives.nseindia.com/corporate/pnb2_07102026184312_Intimation_InterestRateChange_07102026_DS.pdf
- Bank of Baroda — Revision in BRLLR w.e.f. 08.10.2026, filed 7 Oct 2026 — https://nsearchives.nseindia.com/corporate/BANKBARODA_07102026192944_SEintimation.pdf
- Bank of India — Change in Repo Based Lending Rate (RBLR), filed 7 Oct 2026 — https://nsearchives.nseindia.com/corporate/BANKINDIA2_07102026160629_RBLR_.pdf
- Indian Bank — Revision in Repo Benchmark Rate, filed 7 Oct 2026 — https://nsearchives.nseindia.com/corporate/INDIANB_07102026182738_SE_Revision_Interest__Rate07102026.pdf
- Indian Overseas Bank — Revision in EBLR (RLLR) w.e.f. 08.10.2026, filed 7 Oct 2026 — https://nsearchives.nseindia.com/corporate/IOB_07102026191630_EBLR.pdf
- Karur Vysya Bank — Revision in EBR-R, filed 7 Oct 2026 — https://nsearchives.nseindia.com/corporate/KARURVYSYA_07102026190754_Intimation_DSC.pdf
- Tamilnad Mercantile Bank — Revision in RLLR, filed 7 Oct 2026 — https://nsearchives.nseindia.com/corporate/9659523378_07102026174238_76.pdf
- NSE — Corporate announcements, 7–8 Oct 2026 — https://www.nseindia.com/companies-listing/corporate-filings-announcements
- Reserve Bank of India — Policy rates (repo 5.50%) — https://www.rbi.org.in/
- Reserve Bank of India — External Benchmark Based Lending, circular RBI/2019-20/53 dated 4 Sep 2019 — https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11677
- Capital Chronicle: RBI MPC hikes repo 25 bps to 5.50%
- Capital Chronicle explainer: How RBI's rate hike reaches your EMI and FD
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