New Delhi, Oct. 27 -- The RBI increased the repo rate by 25 basis points to 5.50% on October 7. Changes in the repo rate can directly affect repo-linked loans, prompting banks to revise their lending rates.

Recently, India's biggest PSU bank, State Bank of India (SBI), has increased its benchmark lending rates by 25 basis points (bps), raising borrowing costs for home loan customers whose interest rates are linked to these benchmarks.

The revision, effective 15 October 2026, increases the External Benchmark Linked Rate (EBLR) to 8.15%, up from the existing rate of 7.90%.

Many existing home loan borrowers may want to switch to lower interest rates. However, there is a hidden cost to switching even within the same bank: conversion charge...