canara bank loan interest rate: Canara Bank hikes loan interest rates: Check latest lending rates

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Canara Bank has increased the Repo Linked Lending Rate (RLLR) and Marginal Cost of Funds Based Lending Rate (MCLR). The new interest rates are effective from October 7, 2022, according to the bank’s official website.

Canara Bank MCLR

Canara Bank increased rates on overnight to 1-month MCLR by 15 basis points, from 6.90% to 7.05%. The three-month MCLR has been increased by 15 bps to 7.40%, while the six-month MCLR has been increased to 7.80%. The bank increased the one-year MCLR to 7.90%.

Latest Canara Bank MCLR


Source: Canara Bank website

Canara Bank RLLR

According to the Canara Bank website, “RLLR OF THE BANK – 8.80 % w.e.f 07.10.2022.” Earlier, the RLLR was 8.30% in September.

RBI rate hike

On September 30, 2022, the RBI raised the repo rate by 50 basis points to 5.9%. The RBI has raised the repo rate four times in the current fiscal year.

After the Reserve Bank of India increased the repo rate by 50 basis points to 4.50 percent in September, several banks including SBI, ICICI Bank, Yes Bank and PNB increased their lending rates.

How can EMI burden be reduced

Borrowers should prepare for more increases in loan interest rates as experts predict that the central bank will raise policy rates in the future. A borrower can choose to extend the loan’s term if she is unable to make the increased EMI payments.

It is important to remember that increasing loan tenure would result in greater interest payments than increasing EMI payments.

Prepaying the loan balance is also an alternative. The amount of the outstanding loan will decrease if a borrower is able to prepay a portion of the debt. On the basis of the remaining loan balance, the bank will once more compute the EMI. The borrower will be responsible for paying this EMI up until the interest rate is increased once more.

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