Canara Bank Reduces Lending Rates, Making Loans Cheaper

Canara Bank has reduced its marginal cost of funds-based lending rate (MCLR) by 10 basis points across various tenors. This change will result in cheaper consumer loans. Effective from May 12, the one-year MCLR is now 9%. The RBI recently cut the benchmark lending rate by 25 basis points.

In a move expected to make consumer loans more affordable, state-owned Canara Bank has reduced its marginal cost of funds-based lending rate (MCLR) by 10 basis points, effective May 12. These cuts apply across most tenors, notably lowering the one-year rate to 9% from 9.10%.

The updated rates will affect consumer loans such as auto and personal loans. Additionally, one-month, three-month, and six-month tenors will now range between 8.25% and 8.80%, while the overnight rate drops from 8.30% to 8.20%.

This adjustment follows the Reserve Bank of India's recent reduction of its benchmark lending rate by 25 basis points to 6%. The back-to-back cuts aim to stimulate borrowing and spending in the economy.

(With inputs from agencies.)