Press release
🌐 Macro
📊 Neutral
🌍 India
SCB Lending Rates Edge to 8.96% as Fresh Loan Costs Rise to 8.61% in August
Scheduled commercial banks see mixed interest rate trends as outstanding loan rates dip to 8.96% while fresh lending costs climb to 8.61% amid shifting benchmark reliance.
Impact
10/10
💡 Key Takeaways
- WALR on outstanding rupee loans fell to 8.96% in August from 8.97% in July.
- Fresh rupee loan rates rose to 8.61% in August compared to 8.52% in the previous month.
- EBLR-linked loans increased their share of total outstanding floating rate loans to 68.2% by end-June 2026.
- Weighted average domestic term deposit rates on fresh deposits declined to 5.67% in August.
📋 Executive Summary
Scheduled commercial banks reported a marginal decline in the weighted average lending rate (WALR) on outstanding rupee loans to 8.96% in August 2026. Conversely, the WALR on fresh rupee loans increased to 8.61%, while the 1-year median MCLR dropped to 8.61% in September, signaling shifting cost structures across the banking sector.
📊 Sentiment Analysis
Sentiment
📊 Neutral
Impact Score
10/10
Region
🌍 India
Asset Class
🌐 Macro
❓ Frequently Asked Questions
The weighted average lending rate on fresh rupee loans rose to 8.61% in August 2026, up from 8.52% in July 2026.
The share of External Benchmark based Lending Rate (EBLR) linked loans rose to 68.2% by end-June 2026, while MCLR-linked loans decreased to 29.6%.
📰 Source
📅 Originally published:
⚠️ Disclaimer: This content is for training purposes only and should not be considered financial advice. Always conduct your own research before making investment decisions.