Canara Bank Cuts Lending Rates By 10 Basis Points
The lower rates will be effective from Aug. 7.
To pass on the benefit of reduction in interest rates effected by the Reserve Bank of India, Canara Bank has cut its marginal cost of fund-based lending rate by 10 basis points across all tenors, effective from Aug. 7.
With this revision, the bank has cumulatively reduced its MCLR by 20 basis points in the last six months and thus, the one-year MCLR has come down to 8.50 percent per annum from 8.70 percent earlier.
The Bengaluru-headquartered bank said it would be announcing further reductions in lending rates soon. The bank will be rolling out repo rate linked loan products shortly.
With this, the customers desirous of floating rate loans will have two options —MCLR-linked loans or repo rate-linked loans. A customer opting for the repo rate-linked loan will get a direct benefit whenever the RBI cuts the repo rate, it was noted.