RBI Reports Decline in Fresh Loan Rates and Bank Deposit Rates in Sep 2026

The RBI reported a 10-basis-point decline in the weighted average lending rate on fresh rupee loans to 8.51% in September 2026. Fresh and outstanding term deposit rates also declined, while rates on existing loans remained unchanged.

The Reserve Bank of India (RBI) has reported a decline in lending rates on fresh rupee loans and domestic term deposits of Scheduled Commercial Banks (SCBs) during September 2026, according to its October 2026 release titled Lending and Deposit Rates of Scheduled Commercial Banks.

As per the RBI data, the Weighted Average Lending Rate (WALR) on fresh rupee loans decreased by 10 basis points, falling from 8.61% in August 2026 to 8.51% in September 2026. However, the WALR on outstanding rupee loans remained unchanged at 8.96% during the same period.

The central bank also reported a reduction in the one-year median Marginal Cost of Funds Based Lending Rate (MCLR), which declined from 8.61% in September 2026 to 8.55% in October 2026.

On the deposit front, the Weighted Average Domestic Term Deposit Rate (WADTDR) for fresh rupee term deposits declined by six basis points, from 5.67% in August to 5.61% in September 2026. The rate on outstanding rupee term deposits also recorded a marginal reduction of one basis point, decreasing from 6.56% to 6.55%.

The RBI further noted that lending rates on fresh and outstanding rupee loans showed mixed movements across different sectors during September 2026.

The data was collected from Scheduled Commercial Banks during October 2026, excluding Regional Rural Banks and Small Finance Banks.

Key Rate Movements

Source: CA Sansaar