Seven of India’s biggest banks have quietly made loans costlier this month. State Bank of India, HDFC Bank, Punjab National Bank, Bank of India, Indian Bank, Canara Bank and Bank of Baroda have all raised their benchmark lending rates in October and November, with increases of up to 20 basis points. For borrowers, the message is simple: home, auto and personal loan EMIs are heading up, and the next reset date on your loan could bring a higher bill.
The latest round of hikes was reported by ET BFSI on November 11 and by The New Indian Express on November 14. It comes a month after the Reserve Bank of India raised its key repo rate by 25 basis points to 5.50 per cent on October 7, the first rate hike since February 2023. Banks first passed that hike into their repo-linked loan rates in October. Now they are raising their MCLR benchmarks too, which is the second wave of costlier credit.
Which banks raised rates, and by how much
The increases are not identical. Each bank has moved on different dates and across different loan tenures. Here is what the reports show:
- State Bank of India: raised MCLR by 15 basis points across three-month to three-year tenures, effective October 15. Its external benchmark lending rate also rose to 8.15 per cent from 7.90 per cent.
- HDFC Bank: raised MCLR by 5 to 15 basis points across all seven tenures, effective November 7.
- Punjab National Bank: raised MCLR by 10 basis points across all six tenures, effective November 1. Its repo-linked rate moved to 8.35 per cent from 8.10 per cent in October.
- Bank of India: raised MCLR by 10 basis points, effective November 1.
- Bank of Baroda: raised MCLR by 5 to 20 basis points, effective November 12, the largest single move in this round.
- Indian Bank and Canara Bank: also revised their benchmark lending rates in October and November, completing the list of seven lenders named in the ET BFSI report.
Separately, The New Indian Express reported that at least five major banks have raised lending rates by up to 25 basis points in recent weeks, naming SBI, PNB, Bank of India, Indian Bank and HDFC Bank. The increases will push up EMIs for corporate and retail borrowers, including home and auto loan customers, the report said.
Why banks are raising rates now
Two forces are squeezing banks at the same time. First, the RBI’s October hike made money itself costlier. With the repo rate at 5.50 per cent, banks pay more to borrow, and they pass part of that cost to borrowers. Second, deposit costs are climbing. Banks have been paying up to attract deposits, including from non-resident Indians, and media reports have put recent FCNR(B) deposit mobilisation at roughly 133 billion dollars. Higher deposit costs eat into margins, so lenders protect them by raising loan rates.
Inflation is the backdrop. October retail inflation came in at 6.09 per cent, breaching the RBI’s upper tolerance limit for the first time in two years. That strengthens the case for rates staying high. SBI’s research team expects the RBI to raise rates again in December, though by a smaller 25 basis points rather than 50.
What it means for your EMI
If you have a home loan linked to MCLR, your rate changes only at your reset date, which could be every three months, six months or a year, depending on your loan. If you have a repo-linked floating loan, the October hike has already flowed through. Either way, new borrowers now face higher starting rates: home loans start at 7.50 per cent at SBI, 7.45 per cent at PNB and 8.00 per cent at HDFC Bank, according to rate trackers verified on November 10.
The rupee impact is easy to picture. On a Rs 50 lakh home loan over 20 years, a 25 basis point rise adds roughly Rs 750 to Rs 775 to the monthly EMI. On a Rs 30 lakh loan, the extra outgo is around Rs 450 a month. Auto loans and personal loans linked to the same benchmarks will feel the same pressure, and corporate borrowers will see higher working capital costs too.
None of this means loans have become unaffordable overnight. A 10 to 20 basis point move is small next to the 125 basis points of cuts the RBI delivered during 2025. But the direction has changed, and borrowers who took loans at the cheapest rates of the last two years should expect their EMIs to drift up over the next few resets.
What borrowers can do
First, check your loan’s reset date and benchmark. Your bank statement or loan agreement will say whether you are on MCLR or a repo-linked rate, and when the next reset falls. Second, compare rates before you borrow. Public sector banks are currently pricing home loans 50 to 135 basis points below major private banks, so the gap between lenders is wide. Third, if your rate is well above the market, ask your bank for a switch to a lower benchmark or consider a balance transfer, after checking the charges. And finally, watch the RBI’s next policy meeting on December 2 to 4, which is the next moment your EMI can change.
FAQs
Which banks raised lending rates in November 2026?
Seven major lenders, SBI, HDFC Bank, PNB, Bank of India, Indian Bank, Canara Bank and Bank of Baroda, revised their MCLR or benchmark lending rates in October and November, with increases of up to 20 basis points.
How much will my home loan EMI rise?
On a Rs 50 lakh loan over 20 years, a 25 basis point rise adds about Rs 750 to Rs 775 a month. The exact impact depends on your outstanding amount, remaining tenure and reset date.
What is MCLR, and how is it different from a repo-linked rate?
MCLR is a bank’s internal benchmark, the minimum rate at which it can lend. Repo-linked rates move automatically with the RBI’s repo rate, while MCLR loans reset only on fixed dates, such as every three, six or twelve months.
Will rates rise again in December?
The RBI’s next policy meeting is on December 2 to 4. SBI’s research team expects a smaller 25 basis point hike, but the decision will depend on inflation data and global conditions.
Should I switch my loan to another bank?
Only after comparing the full cost. A lower rate helps, but processing fees and transfer charges can wipe out the saving on a small outstanding balance. Check the numbers before you move.
Loan rates have turned a corner after two years of cuts. The November hikes are small on their own, but they tell borrowers the cheap-money phase is over, and the December policy meeting will show how far the turn goes.
