EBLR, MCLR and PLR: what a rate change does to your home loan
Update, 7 October 2026: the RBI raised the repo rate by 0.25% to 5.50%. It reaches each type of loan differently, so each has its own calculation below. The next RBI decision is on 4 December 2026.
Find your loan type in your sanction letter, then use the matching calculator. All three use the same method: your EMI stays the same, and the extra interest turns into extra months.
| Loan type | Linked to | Who sets the change | When it applies |
|---|---|---|---|
| EBLR / RLLR | RBI repo rate (or another external benchmark) | The RBI. Your spread stays fixed. | At least every 3 months |
| MCLR | Your bank's own cost of funds | Your bank | On your reset date, often yearly |
| PLR | Lender's prime lending rate | Your lender | When it revises, no fixed date |
EBLR / RLLR: the RBI's rate passes straight through
On an EBLR (or RLLR) loan your rate is the repo rate plus a fixed spread. When the RBI moves the repo rate, your bank moves your rate by the same amount at your next reset. The 7 October 2026 rise of 0.25%, from 5.25% to 5.50%, is already decided, so the rate change itself is not a guess. Only your reset date and EMI vary.
When it reaches you: Within three months of your last reset at most: EBLR loans must reset at least once a quarter. Your statement shows your reset date. Nothing extra is charged before it.
Spread over the repo rate stays the same, so your rate moves one for one. Type the rate on your latest statement.
MCLR: your bank decides how much, and when
On an MCLR loan the benchmark is your bank's own cost-of-funds rate, published monthly. The RBI's hike pushes it up over time, but by how much and how fast is the bank's call. Your rate changes only on your loan's reset date, so the repo hike can reach you months later, in part, or not at all.
When it reaches you: On your loan's reset date, which is set in your sanction letter. Many MCLR loans reset once a year; some banks use six-monthly or quarterly. Until then the rate does not change.
The 10 bps is only an illustration. Use your bank's published MCLR for your tenor, or the rate change it tells you about. 100 bps is 1%.
If your MCLR moves by a different amount
| Change at your reset | New rate | Months added (EMI unchanged) | EMI to keep your end date | Part-payment that cancels it |
|---|
PLR / HFC prime rate: no fixed schedule
Older loans, and many from housing finance companies, are linked to the lender's own prime lending rate. The lender revises it when it chooses and there is no repo-linked formula, so any figure here is an assumption you type in, not a forecast.
When it reaches you: Whenever your lender revises its prime rate and applies it to your loan. There is no fixed date, so watch for the lender's notice.
The 10 bps is only an illustration. Use the rate change your lender announces. Under the RBI's 2023 framework for floating-rate loans, the lender must tell you if a change alters your EMI or tenure.
If your PLR moves by a different amount
| Change at your reset | New rate | Months added (EMI unchanged) | EMI to keep your end date | Part-payment that cancels it |
|---|
How these numbers are worked out
Each calculator walks your loan month by month at your current rate and again at the new rate, with the EMI unchanged. The difference in months, and in total paid, is the extra tenure and extra interest. The part-payment that cancels it is the amount that leaves your remaining payments worth the same at the new rate as they were at the old one, so the loan ends on the same date. It is a modelled estimate, not discounted, and not advice. Your lender's own schedule is what counts, so check against your statement.