Mumbai: The third largest public sector bank in the country, Canara Bank has increased its marginal cost of funds-based lending rates (MCLR). The Bangalore-based lender has hiked the MCLR by 15 bps to 20 bps. The lender has also hiked interest rates of all retail lending schemes linked with the repo rate.
As a result of this hike, the EMIs of all loans will go up. Canara Bank’s 1-year MCLR is at 8.10%. At present it is at 7.90%. The 6-month MCLR is hiked to 8% from the previous 7.80%. The overnight and 1-month MCLR is increased to 7.25% each from the previous 7.05% each. The 3-month MCLR is increased by 15 bps to 7.55% from the previous 7.40%.
The repo linked lending rate (RLLR) is hiked to 8.80% Canara Bank’s interest rates on loans are based on Credit Risk Grading (CRG) levels from 1 to 4. For women borrowers, home loan rates under RLLR is set at 8.55% for CRG-1, at 8.85% for CRG-2, at 9.25% for CRG-3, and at 10.75% for CRG-4.
MCLR is the minimum rate of interest banks are allowed to give out loans to its customers. It is a benchmark interest rate and it dictates the lower limit of the interest rate for a loan.