The weighted average lending rate (WALR) on fresh rupee loans of scheduled commercial banks stood at 8.61% in August 2026, up slightly from 8.52% the previous month. The WALR on outstanding loans declined marginally to 8.96%.
Bank Lending Rates in August 2026: Slight Variations
According to RBI data released on October 1, 2026, the weighted average lending rate (WALR) on fresh rupee loans of scheduled commercial banks (SCBs) was 8.61% in August 2026, compared to 8.52% in the previous reporting period. This reflects a marginal tightening in new loan pricing amid shifting interest rate expectations.
Meanwhile, the WALR on outstanding rupee loans declined slightly to 8.96% in August 2026 from 8.97% in July 2026. The divergence between new and outstanding loan rates suggests a transition phase in lending portfolios as banks adjust to recent monetary policy cues.
The data, which excludes regional rural banks and small finance banks, is critical for assessing credit market trends. Practitioners involved in corporate financing and loan restructuring should monitor these indicators closely, as they influence borrowing costs and covenant negotiations in credit agreements.
