SBI hikes home loan interest rates: Higher EMI or longer tenure? Costs compared for ₹30, ₹50 lakh and ₹1 crore loans
State Bank of India (SBI) has increased its benchmark lending rates by 25 basis points (bps), raising borrowing costs for home loan customers whose interest rates are linked to these benchmarks.
The revision, effective 15 October 2026, increases the External Benchmark Linked Rate (EBLR) to 8.15% plus the applicable Credit Risk Premium (CRP) and Business Strategy Premium (BSP) from the existing rate of 7.90%.
For existing borrowers, the impact will depend on their loan agreement, outstanding principal, remaining repayment period, and applicable spread. Here's what you need to know.
SBI's home loan interest rates vary by loan product and borrower eligibility, including credit score and other applicable conditions. According to the bank's published rate details, effective 15 October 2026, the rates are as follows:
| Home loan product | Interest rate |
| Home Loan (TL) | 7.50% to 8.80% |
| Home Loan Maxgain (OD) | 8.00% to 9.30% |
| Top Up Loan | 8.00% to 10.75% |
| Top Up (OD) Loan | 8.50% to 11.25% |
| Loan Against Property (P-LAP) | 9.20% to 10.75% |
| Reverse Mortgage Loan (RML) | 10.55% |
| YONO Insta Home Top-up Loan | 8.35% |
*Source: SBI, Effective from 15 October 2026
The bank states that all home loans are linked to the prevailing EBLR of 8.15%, with applicable premiums and terms determining the final rate for individual borrowers.
According to Bankbazaar data, a borrower with a ₹50 lakh home loan and a 20-year repayment period at an assumed interest rate of 8%. Before the revision, the monthly EMI is approximately ₹41,822. If the rate rises to 8.25% and the original tenure remains unchanged, the EMI increases to approximately ₹42,603. This means the borrower pays around ₹781 more each month.
| Particulars | ₹30 lakh | ₹50 lakh | ₹80 lakh | ₹1 crore |
| Original EMI at 8% | ₹25,093 | ₹41,822 | ₹66,915 | ₹83,644 |
| Revised EMI at 8.25% | ₹25,562 | ₹42,603 | ₹68,165 | ₹85,207 |
| Monthly EMI increase | ₹469 | ₹781 | ₹1,250 | ₹1,563 |
| Original total interest | ₹30,22,368 | ₹50,37,281 | ₹80,59,649 | ₹1,00,74,562 |
| Revised total interest | ₹31,34,873 | ₹52,24,788 | ₹83,59,661 | ₹1,04,49,576 |
| Additional interest payable | ₹1,12,504 | ₹1,87,507 | ₹3,00,011 | ₹3,75,014 |
For a ₹1 crore loan, the monthly EMI would rise by approximately ₹1,563, while the additional interest payable over the 20-year period would be around ₹3.75 lakh.
Borrowers who do not want to increase their monthly EMI may be able to retain the existing instalment and extend the repayment tenure. However, this approach can increase the total interest paid because the outstanding loan takes longer to repay.
| Particulars | ₹30 lakh | ₹50 lakh | ₹80 lakh | ₹1 crore |
| EMI (unchanged) | ₹25,093 | ₹41,822 | ₹66,915 | ₹83,644 |
| New tenure (months) | 252 | 252 | 252 | 252 |
| Extra tenure (months) | 12 | 12 | 12 | 12 |
| New tenure (years) | 21 | 21 | 21 | 21 |
| Total repaid | ₹63,19,968 | ₹1,05,33,280 | ₹1,68,53,248 | ₹2,10,66,560 |
| Total interest | ₹33,19,968 | ₹55,33,280 | ₹88,53,248 | ₹1,10,66,560 |
| Extra interest vs base | ₹2,97,599 | ₹4,95,999 | ₹7,93,599 | ₹9,91,998 |
For instance, a borrower with a ₹50 lakh home loan would see the monthly EMI rise from ₹41,822 to ₹42,603, an increase of ₹781, if the tenure remains 20 years. If the borrower keeps the EMI unchanged at ₹41,822, the tenure could extend to 21 years, increasing the additional interest cost to approximately ₹4.96 lakh.
Keeping the EMI unchanged may ease monthly budget pressure, but extending the tenure generally results in a higher overall interest cost.
Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.
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HomeMoneyPersonal FinanceSBI hikes home loan interest rates: Higher EMI or longer tenure? Costs compared for ₹30, ₹50 lakh and ₹1 crore loans
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