Canara Bank hikes MCLRs, updates Repo Linked Lending Rates; check latest loan interest rates (2024)

Canara Bank has increased its marginal cost of lending rates (MCLR) by up to five basis points (bps), according to the bank's stock exchange filing. The new rates will be effective from August 12, 2023.

After the revision, its overnight MCLR rate jumped to 7.95 per cent from 7.9 per cent. One-month MCLR rate increased to 8.05 per cent from 8 per cent. However, the three-month MCLR rate kept unchanged at 8.15 per cent. Further, the bank increased the six-month MCLR rate to 8.5 per cent from 8.4 per cent. The on-year MCLR rate rose to 8.7 per cent. Earlier it was at 8.65 per cent.

Further, Canara Bank’s Repo Linked Lending Rate (RLLR) stood at 9.25 per cent effective from August 12, 2023, as per the Canara Bank's website. “Rates of Interest of all Retail Lending Schemes are linked to REPO LINKED LENDING RATE RLLR OF THE BANK – 9.25%* w.e.f 12.08.2023,” according to Canara Bank’s website.

“Rates of Interest of all Retail Lending Schemes are linked to REPO LINKED LENDING RATE RLLR OF THE BANK – 9.25%* w.e.f 12.08.2023,” according to Canara Bank’s website.

Do note that the revised RLLR will apply only to new accounts opened on or after August 12, 2023, and to those accounts which will complete three years under the RLLR regime on or after August 12, 2023. The accounts that have not been completed for three years under the RLLR regime will continue to be at earlier RLLR i.e. 9.40 per cent, as per the Canara Bank website. This rate cut will impact the home loan lenders of Canara Bank.

Source: Canara Bank stock exchange filing

Further, Repo Linked Lending Rate (RLLR) stood at 9.25 per cent effective from August 12, 2023, as per the Canara Bank's website. “Rates of Interest of all Retail Lending Schemes are linked to REPO
LINKED LENDING RATE RLLR OF THE BANK – 9.25%* w.e.f 12.08.2023,” according to Canara Bank’s website.

This MCLR rate revision came just a few days after RBI monetary policy committee (MPC) meeting. The Reserve Bank of India has kept the repo rate unchanged at 6.5 per cent in its August MPC meeting.

Other banks have also hiked MCLRs
Another state-run lender Bank of Baroda (BoB) hiked their MCLR rates by five basis points, effective from August 12, 2023. Private sector lender, HDFC bank also hiked its MCLR rates by up to 15 basis points
on August 7, 2023. ICICI Bank hiked its MCLR rate by five basis points on August 1, 2023.

Bank of Maharashtra cuts home loan interest rate
Meanwhile, the Bank of Maharashtra, reduced its home loan interest rate by 10 basis points to 8.5 per cent from 8.6 per cent earlier. For car loans, the new interest rate stood at 8.7 per cent from 8.9 per cent earlier. In a statement, the Bank of Maharashtra said that these rates will be effective from August 14, 2023.

Union Bank of India revises MCLR
Union Bank of India has also revised MCLR for its customers. As per the bank's website, here are the latest MCLR

• Overnight MCLR: 7.9 per cent
• One-month MCLR: 7.95 per cent
• Three-months MCLR: 8.25 per cent
• Six-months MCLR: 8.45 per cent
• One-year MCLR: 8.65 per cent
• Two-year MCLR: 8.85 per cent
• Three-year MCLR: 9 per cent

The revised rates will be applicable from August 11, 2023, to September 10, 2023, the bank said.

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