EBLR vs RLLR: How SBI's lending rate revision affects home loan borrowers
EBLR vs RLLR: How SBI's lending rate revision affects home loan borrowers
SBI’s 25-basis-point hike in its External Benchmark Linked Rate (EBLR) and Repo Linked Lending Rate (RLLR) could increase home loan EMIs or extend repayment tenures. Here’s how the two lending rate frameworks work, when rate revisions take effect and what borrowers can do to manage the additional interest burden.
Business Today Desk
- Oct 21, 2026,
- Updated Oct 21, 2026 3:20 AM IST
State Bank of India (SBI) has increased its External Benchmark Linked Rate (EBLR) and Repo Linked Lending Rate (RLLR) by 25 basis points (bps), a move that could raise borrowing costs for customers with benchmark-linked home loans. The revision, effective October 15, 2026, makes it important for borrowers to understand how these benchmarks work, when their loan rates are revised and how the changes affect their equated monthly instalments (EMIs).
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Although EBLR and RLLR are closely related, they are not interchangeable terms. Both link lending rates to an external benchmark, but the applicable benchmark and the bank's lending-rate structure determine how the final interest rate is calculated.
What is EBLR?
EBLR stands for External Benchmark Linked Rate. Under the Reserve Bank of India's framework, banks link eligible floating-rate loans to an external benchmark, such as the RBI repo rate or a benchmark administered by the Financial Benchmarks India Private Ltd (FBIL).
The interest rate charged to a borrower generally comprises the benchmark rate and a bank-determined spread. The spread can reflect factors such as the borrower's credit risk and other applicable pricing components.
When the benchmark changes, the lending rate can change in accordance with the loan agreement and reset schedule. This makes EBLR-linked loans more responsive to changes in monetary policy than loans linked to older internal benchmarks.
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What is RLLR?
RLLR stands for Repo Linked Lending Rate. It is a lending-rate benchmark linked specifically to the RBI's repo rate, the rate at which the central bank lends short-term funds to banks against eligible securities.
When the repo rate rises, a repo-linked loan's interest rate may increase, subject to the lender's spread and reset terms. A repo rate cut can have the opposite effect.
RLLR is therefore a repo-linked form of benchmark-based lending, while EBLR is a broader term for lending rates linked to external benchmarks. The precise terminology and calculation applicable to an SBI borrower depend on the loan product and agreement.
How does the revision affect EMIs?
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SBI's revised EBLR-linked rates range from 7.50% to 8.80% for regular home loans, effective October 15, 2026. The actual rate applicable to an individual borrower depends on the loan terms and eligibility.
For illustration, a ₹50 lakh loan with a 20-year remaining tenure would have an EMI of approximately ₹41,822 at 8%. If the rate rises to 8.25% and the tenure remains unchanged, the EMI would increase to around ₹42,603, a monthly rise of ₹781.
Why does the reset date matter?
Benchmark-linked rates are revised according to the applicable reset schedule, so the impact may not appear immediately when a benchmark changes. Borrowers should check their loan documents, revised interest rate, outstanding principal and remaining tenure with SBI.
They should also ask whether the rate revision will increase the EMI or extend the tenure. Comparing both options can help borrowers manage monthly cash flow while limiting the additional interest payable over the loan's remaining life.
State Bank of India (SBI) has increased its External Benchmark Linked Rate (EBLR) and Repo Linked Lending Rate (RLLR) by 25 basis points (bps), a move that could raise borrowing costs for customers with benchmark-linked home loans. The revision, effective October 15, 2026, makes it important for borrowers to understand how these benchmarks work, when their loan rates are revised and how the changes affect their equated monthly instalments (EMIs).
Advertisement
Although EBLR and RLLR are closely related, they are not interchangeable terms. Both link lending rates to an external benchmark, but the applicable benchmark and the bank's lending-rate structure determine how the final interest rate is calculated.
What is EBLR?
EBLR stands for External Benchmark Linked Rate. Under the Reserve Bank of India's framework, banks link eligible floating-rate loans to an external benchmark, such as the RBI repo rate or a benchmark administered by the Financial Benchmarks India Private Ltd (FBIL).
The interest rate charged to a borrower generally comprises the benchmark rate and a bank-determined spread. The spread can reflect factors such as the borrower's credit risk and other applicable pricing components.
When the benchmark changes, the lending rate can change in accordance with the loan agreement and reset schedule. This makes EBLR-linked loans more responsive to changes in monetary policy than loans linked to older internal benchmarks.
Advertisement
What is RLLR?
RLLR stands for Repo Linked Lending Rate. It is a lending-rate benchmark linked specifically to the RBI's repo rate, the rate at which the central bank lends short-term funds to banks against eligible securities.
When the repo rate rises, a repo-linked loan's interest rate may increase, subject to the lender's spread and reset terms. A repo rate cut can have the opposite effect.
RLLR is therefore a repo-linked form of benchmark-based lending, while EBLR is a broader term for lending rates linked to external benchmarks. The precise terminology and calculation applicable to an SBI borrower depend on the loan product and agreement.
How does the revision affect EMIs?
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SBI's revised EBLR-linked rates range from 7.50% to 8.80% for regular home loans, effective October 15, 2026. The actual rate applicable to an individual borrower depends on the loan terms and eligibility.
For illustration, a ₹50 lakh loan with a 20-year remaining tenure would have an EMI of approximately ₹41,822 at 8%. If the rate rises to 8.25% and the tenure remains unchanged, the EMI would increase to around ₹42,603, a monthly rise of ₹781.
Why does the reset date matter?
Benchmark-linked rates are revised according to the applicable reset schedule, so the impact may not appear immediately when a benchmark changes. Borrowers should check their loan documents, revised interest rate, outstanding principal and remaining tenure with SBI.
They should also ask whether the rate revision will increase the EMI or extend the tenure. Comparing both options can help borrowers manage monthly cash flow while limiting the additional interest payable over the loan's remaining life.
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