Summary of this article
Fresh lending rates rise to 8.64 per cent.
Outstanding loan rates dip slightly in October.
Deposit and MCLR rates show mild easing lately.
Fresh loan rates have increased in October 2025, according to the latest press release by the Reserve Bank of India (RBI). The weighted average lending rate on fresh rupee loans of scheduled commercial banks (SCBs) touched 8.64 per cent in October 2025, up from 8.50 per cent in September. This is part of the month-wise movement seen through the year, where fresh lending rates moved from the 8.30 to 8.40 per cent range in earlier months to slightly higher levels by the second half of 2025.
Outstanding Loan Rates Record A Minor Fall
The weighted average lending rate for outstanding rupee loans was 9.24 per cent in October, against 9.26 per cent in September. Outstanding loan rates had moved within a narrow band over the past year and were generally confined to 9.20-9.30 per cent, reflecting changes over the months as earlier lending cycles continued to adjust.
MCLR Witnesses A Marginal Decline
The 1-year median marginal cost of funds-based lending rate (MCLR) eased to 8.50 per cent in November from 8.55 per cent in October. This was near 8.60 per cent for most of mid-2025 and finally showed a slight movement in the recent update.
Deposit Rates Ease In October
On the deposit side, the weighted average domestic term deposit rate on fresh rupee deposits fell to 5.57 per cent in October from 5.61 per cent in September. This followed the earlier monthly shifts during 2025, when the rate moved within the 5.50-5.70 per cent range.
The rate on outstanding term deposits was 6.78 per cent in October against 6.82 per cent in September. Outstanding deposit rates reflected gradual monthwise adjustments over recent quarters and moved around the 6.70-6.80 per cent range.
Trend in Previous Months
Lending and deposit rates changed periodically through 2024 and in early 2025, as banks reacted to shifts in funding patterns, credit demand cycles, and deposit mobilisation trends recorded in the monthly data releases. For instance, deposit rates started increasing for a few months during late 2024 and early 2025, before stabilising in mid-2025.
Similarly, lending rates on fresh loans recorded modest increases across various months of 2025.
The latest update for October and November adds to these month-wise movements by providing the latest figures on fresh lending rates, outstanding loan costs, MCLR behaviour and deposit rate shifts.
These form part of the regular series published by RBI and allows for a comparison of how key rates have changed across recent months.
