According to a statement issued with the BSE, Canara Bank has increased the marginal cost of funds-based lending rate (MCLR) and repo-linked lending rate (RLLR) across maturities effective July 7, 2022.
Across all mandates, the bank increased the MCLR by 10 basis points. The bank’s website says 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. Many consumer loans are linked to the one-year MCLR which is now 7.50%.
The above MCLR only applies to new loans/advances sanctioned by first disbursement made on or after July 7, according to the Canara Bank website.
The above MCLR only applies to new loans/advances sanctioned by first disbursement made on or after July 7, 2022, as well as credit facilities, renewed, revised, reset and where the transition to interest rate linked to MCLR is permitted at the option of the Borrower. option, on or after July 7, 2022, according to the Canara Bank website.
Existing bank borrowers will, however, have the option of switching to MCLR-based interest rates (other than fixed rate loans). Contact the branch if you are a borrower wishing to switch to the MCLR-based interest rate.
Effective July 7, 2022, the bank increased the interest rate on all retail lending programs linked to the repo-linked lending rate (RLLR) by 50 basis points, from 7.30% to 7, 80%.