The Reserve Bank of India reported that the weighted average lending rate on fresh rupee loans fell to 8.51 percent in September 2026, while rates on existing outstanding loans remained steady at 8.96 percent throughout the same month.
Bank Lending Rate Trends
New Delhi [India], October 30 (ANI): The weighted average lending rate (WALR) on fresh rupee loans of scheduled commercial banks (SCBs) declined by 10 basis points to 8.51 per cent in September 2026 from 8.61 per cent in August, according to data released by the Reserve Bank of India (RBI) on Friday. In its release titled “Lending and Deposit Rates of Scheduled Commercial Banks – October 2026,” the central bank stated, “The WALR on fresh rupee loans of SCBs declined to 8.51 per cent in September 2026 from 8.61 per cent in August 2026.”
However, lending rates on existing loans remained unchanged during the month. “The weighted average lending rate (WALR) on outstanding rupee loans of SCBs remained unchanged at 8.96 per cent in September 2026 compared to August 2026,” the RBI noted.
MCLR and Sectoral Performance
The central bank also reported a decline in the one-year median Marginal Cost of Funds based Lending Rate (MCLR) of scheduled commercial banks. “1-Year median Marginal Cost of Funds based Lending Rate (MCLR) of SCBs declined to 8.55 per cent in October 2026 from 8.61 per cent in September 2026,” the release stated. The RBI further highlighted that lending rates did not move uniformly across different sectors. “The WALR on fresh as well as outstanding rupee loans exhibited a mixed movement across sectors in September 2026,” it said.
Deposit Rate Updates
On the deposit side, the weighted average domestic term deposit rate (WADTDR) on fresh rupee term deposits declined by six basis points to 5.61 per cent in September from 5.67 per cent in August. “The WADTDR on fresh rupee term deposits of SCBs declined to 5.61 per cent in September 2026 from 5.67 per cent in August 2026,” the RBI stated. Similarly, the weighted average domestic term deposit rate on outstanding rupee term deposits marginally declined by one basis point. “The weighted average domestic term deposit rate (WADTDR) on outstanding rupee term deposits of SCBs marginally declined to 6.55 per cent in September 2026 from 6.56 per cent in August 2026,” the release noted.
The RBI said the data on lending and deposit rates were received during October 2026 from scheduled commercial banks, excluding regional rural banks and small finance banks. The latest figures showed a decline in lending rates on fresh rupee loans and deposit rates on both fresh and outstanding term deposits, while lending rates on outstanding rupee loans remained unchanged in September. (ANI)
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