RBI: Average interest rate on fresh bank loans falls in September, deposit rates ease slightly
The RBI released data on bank lending and deposit rates for September 2026 on 30 October 2026. The figures matter to people who take bank loans or open fixed deposits.
What this means for you
If you are planning a new bank loan, the average rate on fresh loans was slightly lower in September. For those repaying an existing loan, the average rate stayed the same as the previous month. The average interest on term deposits also eased a little in September. These are only figures; you do not need to do anything, but check your own rate with your bank.
Key facts
- Weighted average lending rate (WALR) on outstanding rupee loans was 8.96% in September 2026, same as August 2026.
- WALR on fresh rupee loans fell to 8.51% in September 2026 from 8.61% in August 2026.
- The 1-year median MCLR was 8.55% in October 2026, down from 8.61% in September 2026.
- Weighted average domestic term deposit rate (WADTDR) on outstanding rupee term deposits was 6.55% in September 2026, against 6.56% in August 2026.
- WADTDR on fresh rupee term deposits fell to 5.61% in September 2026 from 5.67% in August 2026.
- The data covers scheduled commercial banks and excludes regional rural banks and small finance banks.
What was released
The Reserve Bank of India (RBI) released its monthly data on lending and deposit rates of scheduled commercial banks on 30 October 2026. The data is based on information received during October 2026 and excludes regional rural banks and small finance banks.
What changed in lending rates
According to the RBI, the weighted average lending rate (WALR) on outstanding rupee loans of these banks was 8.96 per cent in September 2026, the same as in August 2026. So this rate did not change.
The WALR on fresh rupee loans declined to 8.51 per cent in September 2026 from 8.61 per cent in August 2026. The 1-year median Marginal Cost of Funds based Lending Rate (MCLR) declined to 8.55 per cent in October 2026 from 8.61 per cent in September 2026. MCLR is the minimum rate banks use as a base to set loan interest rates.
Deposit rates
The weighted average domestic term deposit rate (WADTDR) on outstanding rupee term deposits declined marginally to 6.55 per cent in September 2026 from 6.56 per cent in August 2026.
The WADTDR on fresh rupee term deposits declined to 5.61 per cent in September 2026 from 5.67 per cent in August 2026.
Who is affected
The data shows which way average bank interest rates are moving. A lower average rate on fresh loans means new borrowers paid slightly less on average. Lower average deposit rates mean people opening new term deposits earned slightly less on average.
These are averages across banks. The rate on any single bank, scheme or customer can be different.
What ordinary people should do
This report has no direct effect on ordinary people and there is nothing they need to do. To know the actual rate on your loan or fixed deposit, contact your bank. The full data is available on the RBI website.
Questions and answers
Which banks does this RBI data cover?
It covers scheduled commercial banks (SCBs). Regional rural banks and small finance banks are not included.
What is the interest rate on fresh loans now?
The weighted average lending rate on fresh rupee loans was 8.51% in September 2026. It was 8.61% in August 2026.
Did the rate on existing loans change?
No. The weighted average lending rate on outstanding rupee loans was 8.96% in September 2026, unchanged from August 2026.
What interest do term deposits pay?
The weighted average rate on outstanding rupee term deposits was 6.55% in September 2026. On fresh rupee term deposits it was 5.61%.
What is MCLR?
MCLR stands for Marginal Cost of Funds based Lending Rate, the minimum rate banks use as a base to set loan rates. The 1-year median MCLR was 8.55% in October 2026.
Glossary
- Small finance bank
- RBI-licensed banks that mainly serve small businesses, farmers and low-income households.
Source: RBI, "Lending and Deposit Rates of Scheduled Commercial Banks – October 2026", 30 October 2026. Read the original notice
This routine notice was drafted with AI from an official source and published automatically; an editor reviews it after publishing. Report an error