Weighted average lending rate on outstanding rupee loans by scheduled commercial banks remained at 8.96% in September 2026. Fresh loans averaged 8.51%.
Bank Lending and Deposit Rates: October 2026 Trends
Data released by the Reserve Bank of India shows that the weighted average lending rate (WALR) on outstanding rupee loans of scheduled commercial banks (SCBs) remained unchanged at 8.96% in September 2026, matching the August level. This reflects pricing stability amid a pause in monetary policy changes.
The WALR on fresh rupee loans, however, declined to 8.51% in September 2026, indicating competitive pricing for new borrowers. The data excludes regional rural banks and small finance banks. Deposit rate trends were stable, with banks balancing asset yields and funding costs.
Legal and financial practitioners should note the narrowing gap between fresh and outstanding loan rates, which may signal increased competition for creditworthy borrowers. This trend can impact loan structuring, project finance, and debt advisory work.
