Interest rates offered by banks on fresh rupee term deposits declined in July 2026, while lending rates on new loans remained broadly stable, according to the latest data released by the Reserve Bank of India (RBI).
The average interest rate on fresh rupee term deposits fell to 5.90% in July 2026, compared with 5.99% in June, marking a decline of 9 basis points.
Meanwhile, the average lending rate on fresh rupee loans eased marginally to 8.52% in July from 8.53% in June. In contrast, the average rate on outstanding rupee loans increased slightly to 8.97%, up from 8.96% in the previous month.
Sector-wise Movement in Lending Rates
RBI data showed that borrowing costs moved differently across sectors during July 2026.
The lending rate on fresh loans to the trade sector declined to 7.79% from 8.00% in June, while the rate applicable to professional services fell to 8.19% from 8.32%.
On the other hand, lending rates increased for several sectors. The rate on fresh infrastructure loans rose to 7.71% from 7.56%, while the rate for large industries increased to 7.53% from 7.46%.
The average lending rate on fresh loans to MSMEs also edged higher, rising to 8.82% in July from 8.78% in June.
Existing Term Deposit Rates Unchanged
The average interest rate on outstanding rupee term deposits remained steady at 6.58% in July 2026, unchanged from June.
The RBI noted that lending rates on both fresh and outstanding rupee loans recorded mixed movements across different sectors during the month.
The data covers scheduled commercial banks, while regional rural banks and small finance banks are excluded from the dataset. CASansaar