Canara Bank raises MCLR and RLLR on loans: EMIs will increase

7 Jul 2022 , 12:33 PM

According to a statement released with BSE, Canara Bank has increased the marginal cost of funds-based lending rate (MCLR) and repo-linked lending rate (RLLR) across tenors with effect from July 7, 2022.

Across all tenures, the bank increased MCLR by 10 basis points. The bank’s website states that the current overnight MCLR is 6.75%. The MCLR will be 6.75% for one month. The MCLRs for the three and six months are 7.05 and 7.45%, respectively. Numerous consumer loans are related to the one-year MCLR, which is now 7.50%.

The above MCLR is only applicable to new loans/advances sanctioned the first disbursement made on or after July 7, according to the Canara Bank website.

The above MCLR is only applicable to new loans/advances sanctioned the first disbursement made on or after July 7, 2022, as well as those credit facilities, renewed, reviewed, reset, and where switchover to MCLR linked interest rate is permitted at the borrower’s option, on or after July 7, 2022, according to the Canara Bank website.

Existing bank borrowers, however, will have the choice to switch to interest rates based on MCLR (other than fixed-rate loans). Contact the branch if you’re a borrower who wants to move to the MCLR-based interest rate.

With effect from July 7, 2022, the bank increased the interest rate on all retail lending programs tied to the repo-linked lending rate (RLLR) by 50 basis points, from 7.30% to 7.80%.