Primary source: Bank of Baroda — stock-exchange intimation: revision in BRLLR w.e.f. 08.10.2026 (SEBI LODR Reg. 30) · Dated 13 Oct 2026. Rates, schemes and circulars change — verify on the official page before you act.
What changed (official filings)
The RBI Monetary Policy Committee raised the policy repo rate by 25 basis points to 5.50% on 7 October 2026 (RBI resolution; our note: RBI MPC October 2026). Within a day, listed banks informed the stock exchanges of matching increases to their repo-linked benchmarks:
| Bank | Benchmark | Old | New | Effective | Official intimation |
|---|---|---|---|---|---|
| Bank of Baroda | BRLLR (repo 5.50% + mark-up 2.65%) | 7.90% | 8.15% | 8 Oct 2026 | Exchange filing |
| Indian Overseas Bank | RLLR | 8.10% | 8.35% | 8 Oct 2026 | Exchange filing |
| Punjab National Bank | RLLR (incl. 0.35% business strategic premium) | 8.10% | 8.35% | 8 Oct 2026 | Report of PNB exchange intimation, 7 Oct 2026 |
PNB said its MCLR and base rate were unchanged. Filings checked 13 Oct 2026. Rates change, so confirm on your lender’s own notice before you act.
Update, 15 Oct 2026: SBI raised its external benchmark lending rate to 8.15% + CRP + BSP (from 7.90% + CRP + BSP), its RLLR to 7.75% + CRP and its one-year MCLR from 8.70% to 8.85%, effective 15 October 2026 (SBI EBLR, SBI MCLR). SBI LAP loans priced on one-year MCLR will move at their next reset. Rates verified on 27 October 2026.
What it means for a ₹5 Cr+ borrower
- Benchmark up, spread usually the same. Your rate is the benchmark plus the spread fixed at sanction. A 25 bps benchmark rise means your rate goes up 25 bps from the next reset date in your agreement. The spread doesn’t change unless the lender re-prices it.
- LAP and term loans: most lenders keep the EMI the same and extend the tenure, unless your Key Fact Statement says otherwise.
- CC/OD limits: you pay interest on what you draw. A limit that is drawn close to full feels the increase every month. Interest servicing also goes into the bank’s review at your next renewal.
- MCLR-linked loans don’t move yet. They change only after the lender revises MCLR and your reset date arrives.
Worked example (illustrative numbers)
Illustrative only, not a quote. Take a ₹10 crore LAP over 15 years at 9.50%, priced on a repo-linked rate. The EMI is about ₹10,44,225. At 9.75%:
- If the EMI is raised: about ₹10,59,363 a month (around ₹15,000 more).
- If the EMI stays the same and the tenure is extended: roughly 6 more months of EMIs (about 186 instead of 180, assuming the full tenure is still left).
On a ₹10 crore CC limit drawn at ₹8 crore on average, 25 bps adds roughly ₹2,00,000 a year in interest (₹8 Cr × 0.25%).
What to do now
- Find your benchmark. Your sanction letter or Key Fact Statement shows whether your loan is priced on RLLR/EBLR, MCLR or T-bill, and what the spread is.
- Note your reset date. Ask the bank in writing for the date of the next reset, and whether it will change the EMI or the tenure.
- Look at the tenure, not just the EMI. Several rate rises can quietly lengthen a LAP well past what you planned. You can ask the bank to raise the EMI instead.
- Use your working-capital renewal. If your CC/OD renewal is within six months, prepare to negotiate the spread. Start with a renewal and compliance review.
- Compare before you switch. Look at the spread, the costs and how long you will keep the loan. See balance transfer and top-up.
Need a second look at your terms?
We read your loan terms and compare options for loan against property, working capital, LRD and warehouse rental loans of ₹5 crore and above. If your property is in Chennai, see loan against property in Chennai. The bank decides the loan. Contact JR Loan Advisors to review your file.
Review date: 13 Nov 2026 (we recheck rates and sources monthly).
Written and reviewed by CA Jitendraa Rathi, Chartered Accountant (CA membership number 217936) · Ex-banker, 20 years of experience in credit and lending · LinkedInLast reviewed · Expert review: CA Jitendraa Rathi (ICAI 217936)