Archive · 30 Sep 2025
Lending Rates Ease Marginally in August, RBI Reports
The RBI shared some numbers about how much interest banks are charging for loans and paying on deposits.
The interest rates on new loans and the ones already out there went down a little bit in August.
The interest rates on new deposits also dropped a bit, and the ones on existing deposits did too.
The share of loans linked to outside standards went up, and the share tied to a specific bank rate went down.
This means things changed slightly for both borrowing and saving money.
Weighted Average Lending Rate (WALR) on fresh rupee loans softened to 8.75% in August.
WALR on outstanding rupee loans edged lower to 9.32% in August.
One-year median MCLR remained unchanged at 8.60% in September.
External benchmark-linked loans rose to 62.9% by the end of June 2025.
Weighted Average Domestic Term Deposit Rate (WADTDR) on fresh deposits moderated to 5.56% in August.
- Who
- Reserve Bank of India (RBI)
- What
- Reported on lending and deposit rates
- When
- August 2025
- Where
- India
- Why
- To provide an overview of financial conditions.
Borrowers
Lenders
Impact of Rate Changes
Borrowers
Benefit from slightly lower lending rates.
Lenders
May experience a reduction in profit margins due to lower lending rates and potentially deposit rates.
- WALR (Fresh Loans)
- 8.75% in August
- WALR (Outstanding Loans)
- 9.32% in August
- 1-Year MCLR
- 8.60% in September
- External Benchmark-linked Loans
- 62.9% (June 2025)
- MCLR-linked Loans
- 33.8%
- WADTDR (Fresh Deposits)
- 5.56% in August
- WADTDR (Outstanding Deposits)
- 6.87% in August
