South Indian Bank MCLR Up: Does Your EMI Rise?

South Indian Bank raised its MCLR by 5 basis points from October 20, 2026. If your loan is linked to this bank's MCLR, your EMI may increase at your next reset date. Here's what to check.

Here's what happened: South Indian Bank increased its Marginal Cost of Funds-based Lending Rate (MCLR) by 5 basis points across all tenures, effective October 20, 2026.. The revised MCLR now ranges from 8.20% for overnight tenures to 9.50% for longer tenures, making new and reset floating-rate loans marginally costlier.. MCLR is the internal benchmark rate banks use to price floating-rate loans — a rise here flows through to borrowers at their next scheduled reset date..

What you should do: Check your loan sanction letter or call South Indian Bank to find your loan's reset date — that is the exact day the higher MCLR affects your EMI.. Calculate the EMI impact using a free online loan calculator: enter your outstanding principal, remaining tenure, and the new applicable rate to see the revised figure.. Compare South Indian Bank's revised MCLR with external benchmark-linked rates (EBLR/repo-linked) at other lenders — if the gap is wide, ask your bank about a balance transfer or rate switch..

Loans disbursed before October 20 are NOT immediately affected — only the next reset date triggers the new MCLR. Request your reset schedule in writing from the bank today.