RBI Reports Rise in Lending Rates on Fresh Rupee Loans in January 2026

The Reserve Bank of India reported that the weighted average lending rate (WALR) on fresh rupee loans by scheduled commercial banks rose to 8.67% in January 2026 from 8.28% in December 2025, driven mainly by state-owned banks. Meanwhile, WALR on outstanding loans slightly declined to 9.04%. The one-year median Marginal Cost of Funds-based Lending Rate (MCLR) increased to 8.45% in February 2026. Deposit rates on fresh and outstanding term deposits saw marginal decreases during the same period.