The weighted average lending rate (WALR) on new rupee loans extended by scheduled commercial banks (SCBs) in India decreased to 8.51% in September 2026. This rate was 8.61% in the previous month, August 2026. This information was provided in a report released on Friday by the Reserve Bank of India (RBI).
Stabilization of Existing Loan Rates
Despite the decrease in new loan rates, the rates on existing loans remained unchanged in September 2026. The weighted average lending rate (WALR) on existing rupee loans also remained at 8.96%, the same as in August 2026. This indicates different fluctuations in the lending and deposit market in India.
Decrease in MCLR and Its Impacts
The Reserve Bank of India also reported a decrease in the marginal cost of funds based lending rate (MCLR) for one-year loans. This rate decreased to 8.55% in October 2026, showing a significant drop from 8.61% in September. These rate changes clearly impact the lending trend in India and may reduce the financial burden on borrowers.
The central bank emphasized that lending rates have not moved uniformly across different economic sectors, and there have been fluctuations in this regard. In other words, the WALR on new and existing loans in September 2026 changed in a mixed manner across various sectors.
Decrease in Deposit Rates
In the deposit sector, the weighted average rate on term deposits in rupees also decreased in September 2026. The rate on new deposits fell to 5.61%, down from 5.67% in the previous month. Additionally, the rate on existing deposits slightly decreased to 6.55% in September 2026.
This decrease in deposit and loan rates may indicate the central bank's monetary policies aimed at stimulating economic growth and increasing access to credit. Given the economic conditions, these changes may encourage consumers and businesses to utilize financial facilities and help improve economic conditions.
Reports indicate that the data regarding lending and deposit rates in October 2026 was collected from scheduled commercial banks and does not include regional banks and small financial institutions.
