The State Bank of India (SBI) has increased its External Benchmark Linked Rate (EBLR) and Repo Linked Lending Rate (RLLR) by 25 basis points (bps), effective October 15, 2026. The revision could increase borrowing costs for customers with benchmark-linked home loans, making it important for borrowers to understand how the rates work and how the change may affect their equated monthly instalments (EMIs).
Although EBLR and RLLR are closely connected, they are not identical terms. Both involve linking lending rates to external benchmarks, but the applicable benchmark, bank spread and loan agreement determine the final interest rate charged to a borrower.
What Are EBLR and RLLR?
External Benchmark Linked Rate (EBLR): EBLR refers to a lending rate linked to an external benchmark. Under the Reserve Bank of India’s framework, eligible floating-rate loans are linked to benchmarks such as the RBI repo rate or an eligible benchmark administered by Financial Benchmarks India Private Ltd (FBIL).
The final interest rate generally includes the benchmark rate and a spread determined by the bank. This spread may reflect the borrower’s credit risk and other applicable pricing factors.
When the benchmark changes, the loan’s interest rate can also be revised according to the terms and reset schedule specified in the agreement. As a result, EBLR-linked loans can respond more directly to changes in monetary policy than loans tied to older internal benchmarks.
Repo Linked Lending Rate (RLLR): RLLR is a lending-rate benchmark linked specifically to the RBI repo rate. The repo rate is the rate at which the central bank lends short-term funds to banks against eligible securities.
When the repo rate increases, the interest rate on a repo-linked loan may rise, depending on the bank’s spread and applicable reset terms. A reduction in the repo rate may lead to a lower lending rate, subject to the same conditions.
In simple terms, RLLR is a repo-linked type of benchmark-based lending rate, while EBLR is a broader category covering lending rates linked to external benchmarks. The exact terminology and calculation for an SBI borrower depend on the specific loan product and agreement.
How SBI’s Rate Revision Could Affect Home Loan EMIs
SBI’s revised EBLR-linked rates for regular home loans range from 7.50% to 8.80%, effective October 15, 2026. The actual rate available to an individual borrower depends on the applicable loan terms and eligibility.
The following example illustrates how a change in the interest rate can affect monthly repayments.
For a home loan of ₹50 lakh with a remaining tenure of 20 years, the approximate EMI would be ₹41,822 at an annual interest rate of 8%. If the rate increases to 8.25% while the tenure remains unchanged, the EMI would rise to approximately ₹42,603.
This represents an increase of around ₹781 per month. The figures are illustrative and assume the stated loan amount, interest rates and remaining tenure.
EBLR vs RLLR: Key Differences for Borrowers
| Feature | EBLR | RLLR |
|---|---|---|
| Full form | External Benchmark Linked Rate | Repo Linked Lending Rate |
| Benchmark | An eligible external benchmark, such as the RBI repo rate or an FBIL benchmark | RBI repo rate |
| Interest rate calculation | Benchmark plus the applicable bank spread and other pricing components | Repo-linked benchmark plus the applicable bank spread and other pricing components |
| When the benchmark rises | Interest rate may increase, subject to reset terms | Interest rate may increase, subject to reset terms |
| When the benchmark falls | Interest rate may decrease, subject to reset terms | Interest rate may decrease, subject to reset terms |
| Possible EMI impact | EMI may increase or the loan tenure may be extended | EMI may increase or the loan tenure may be extended |
| What borrowers should check | Benchmark, spread and reset schedule | Repo-linked rate, spread and reset schedule |
Both types of loans can be affected by benchmark movements. However, borrowers should refer to their individual loan agreements to understand which benchmark applies and how the bank calculates the final interest rate.
Why the Loan Reset Date Matters
An increase in a benchmark does not necessarily change a borrower’s EMI immediately. The timing depends on the reset schedule applicable to the loan. This is why borrowers should review their loan documents and confirm the revised interest rate, outstanding principal and remaining repayment period with SBI.
Customers should also check whether the bank will adjust the EMI, extend the loan tenure or provide options under the applicable terms. Comparing these alternatives can help borrowers manage monthly expenses and understand how the revision may affect the total interest payable over the remaining loan period.
Disclaimer: This article is intended for general informational purposes only and does not constitute financial or investment advice. Interest rates, EMI amounts and loan conditions may vary depending on the lender’s policies, borrower eligibility and individual loan agreements. Borrowers should confirm the latest applicable rates and repayment options directly with SBI or a qualified financial adviser before making decisions.