Canara Bank Inches Up Loan Rates Post-RBI Standstill

Canara Bank has increased its marginal cost of funds-based lending rate (MCLR) by 5 basis points, affecting most consumer loans. The one-year MCLR is now 9.05%, while other tenors range from 8.30% to 8.85%. This follows RBI's decision to maintain its lending rate at 6.5%.

In a recent development, state-owned Canara Bank has raised its marginal cost of funds-based lending rate (MCLR) by 5 basis points, resulting in increased costs for most consumer loans.

The benchmark one-year MCLR, commonly applied to auto and personal loans, will now stand at 9.05%, up from 9%. Canara Bank disclosed this in a regulatory filing.

Other MCLR rates for tenors ranging from one month to six months are set between 8.40% and 8.85%, with the overnight rate adjusted to 8.30%. The new rates will be effective from October 12, 2024, following the RBI's decision to keep its own lending rate steady at 6.5% for the ninth time.