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.

What are SBI’s revised home loan interest rates?

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:

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.

How does a 25 bps hike affect your EMI?

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. Keeping the EMI unchanged instead would require a longer repayment period, increasing the total interest paid over the life of the loan.

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.

What if you keep your EMI unchanged and extend the loan tenure?

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.

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. Increasing the EMI, if affordable, can help borrowers limit this additional expense by retaining the original repayment period.

Disclaimer: The calculations are for illustrative purposes only. Actual EMIs, repayment tenure and interest costs may vary depending on the outstanding loan amount, applicable interest rate, remaining tenure and SBI’s loan terms. Check the bank’s official website for the latest rates and conditions.