Canara Bank Raises MCLR Rates by 5 Basis Points Effective August 12, 2023

CollegeUnified By CollegeUnified 4 Min Read
Canara Bank Raises MCLR Rates

Canara Bank News: Public sector bank, Canara Bank, has implemented an upward revision in its MCLR rates across various tenors, marking an increase of up to five basis points. Additionally, the Repo Linked Lending Rate (RLLR) has been set at 9.25 percent, effective from August 12, 2023. Continue reading to discover the details of these new rates.

Canara Bank Increases MCLR Rates and Adjusts Repo Linked Lending Rate (RLLR)

Canara Bank Raises MCLR Rates by 5 Basis Points Effective August 12, 2023
Canara Bank Raises MCLR Rates

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Canara Bank has announced an increase in its Marginal Cost of Lending Rates (MCLR) by up to five basis points (bps), as per an official filing with the stock exchange. The revised MCLR rates will come into effect on August 12, 2023.

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Read this:

Bank of Baroda Increase Lending Rates by Up to 10 Basis Points.

Following this adjustment, the overnight MCLR rate has risen from 7.9 percent to 7.95 percent, while the one-month MCLR rate has gone up from 8 percent to 8.05 percent. However, the three-month MCLR rate remains unchanged at 8.15 percent.

What is the MCLR rate in Canara Bank?

These are the MCLR rates effective from 7 December 2021:

Tenor Canara Bank MCLR Rate
Overnight 7.90%
1 month 8.00%
3 months 8.15%
6 months 8.45%
1 year 8.65%

Revised Repo Linked Lending Rate (RLLR) Impacts New and Existing Canara Bank Accounts

Moreover, Canara Bank’s Repo Linked Lending Rate (RLLR) is set at 9.25 percent from August 12, 2023, as stated on the bank’s official website. This new rate applies to all Retail Lending Schemes linked to the REPO LINKED LENDING RATE RLLR OF THE BANK. Notably, the revised RLLR will be applicable to new accounts opened on or after August 12, 2023, as well as to accounts that complete three years under the RLLR regime on or after the same date. Accounts not yet completing three years under the RLLR regime will maintain the earlier RLLR rate of 9.40 percent, according to information provided by Canara Bank’s website. This change will particularly affect Canara Bank’s home loan borrowers.

The adjustment in MCLR rates follows closely after the recent monetary policy committee (MPC) meeting held by the Reserve Bank of India. The RBI has chosen to retain the repo rate at 6.5 percent in its August MPC meeting.

Did Canara Bank increase interest rates?

The one-year MCLR rate has been elevated to 8.7 percent, marking a change from its previous level of 8.65 percent. Moreover, Canara Bank’s Repo Linked Lending Rate (RLLR) has been set at 9.25 percent, taking effect from August 12, 2023, in accordance with the information on Canara Bank’s official website.

What is the MCLR rate for Canara Bank?

Canara Bank’s MCLRs (Marginal Cost of Funds Based Lending Rates) were recently updated. The revised tariffs will take effect on 7 April 2022. The MCLR has been adjusted for different tenures and now ranges from 6.65 percent to 7.35 percent, depending on the loan maturity.