Cheaper EMIs for Canara Bank Home, Car & Business Loans Amidst COVID Times

Passing on the benefit of the slashed repo rate by RBI, Canara Bank has cut down its lending rates for new as well as existing customers.

The state-owned lender has reduced its repo-linked lending rates (RLLR) by 40 basis points bps to 6.90 percent and the marginal cost of fund-based lending rates (MCLR) by 20 basis points across various tenors.

The revised lending rates will make borrowing cheaper. While all the RLLR customers will now serve lower EMIs, the existing MCLR customers will get the benefit as per the loan reset date. The new lending rates for Canara Bank will be effective from June 7, 2020.

Now the one-year MCLR for Canara Bank customers stands at 7.65 percent and the six-month MCLR is 7.60 percent. The rates of overnight and one-month MCLRs are 7.30 percent while three-month MCLRs are 7.55 percent.

All retail loans on floating rates such as Home loans, Education Loans, Auto Loans, and Credit facilities for MSMEs are linked to RLLR. Thus maximum customers will tap the benefit of reduced EMIs. The existing customers can switch to MCLR-linked products as well.

Earlier, SBI, HDFC, ICICI, Punjab National Bank, Bank of India, and UCO Bank have also slashed their lending rates linked to repo rates.