New Delhi [India], August 31 : Interest rates offered by banks on fresh term deposits declined in July, while rates charged on new loans remained largely unchanged, according to Reserve Bank of India (RBI) data released on Monday.
The average interest rate on fresh rupee term deposits fell to 5.90 per cent in July from 5.99 per cent in June, a decline of 0.09 percentage points.
At the same time, the average lending rate on fresh rupee loans declined marginally to 8.52 per cent from 8.53 per cent in June.
However, the average rate on loans already outstanding edged up to 8.97 per cent in July from 8.96 per cent in June.
RBI said lending rates on fresh as well as existing rupee loans "exhibited a mixed movement across sectors in July 2026."
Detailed RBI data showed that the movement in borrowing costs differed across sectors during July.
The rate on fresh loans to the trade sector declined to 7.79 per cent from 8.00 per cent in June, while the rate for professional services fell to 8.19 per cent from 8.32 per cent.
However, fresh lending rates for some other sectors increased. The rate for infrastructure rose to 7.71 per cent from 7.56 per cent, while that for large industries increased to 7.53 per cent from 7.46 per cent.
The rate on fresh loans to MSMEs also edged up to 8.82 per cent from 8.78 per cent during the month, according to the detailed RBI data.
Meanwhile, the average rate on existing rupee term deposits remained unchanged at 6.58 per cent in July compared with June.
The RBI's data cover scheduled commercial banks, excluding regional rural banks and small finance banks.