Canara Bank’s Latest Move, Loan Interest Rates Cut for All Customers

Canara Bank : If you have taken a home loan or personal loan from Canara Bank, there’s good news for you. The bank has announced a reduction in its loan interest rates, bringing relief to its customers. Let’s take a closer look at the details of this interest rate cut.

Canara Bank Cuts MCLR by 0.10%

Canara Bank has reduced its Marginal Cost of Lending Rate (MCLR) by 10 basis points or 0.10%. This means that you will now get a loan at a lower interest rate than before.

This cut applies to all types of loans, including home loans, car loans, and personal loans. Both existing and new customers who have loans linked to MCLR will benefit from this change.

Effect of MCLR Cut

The bank has reduced the MCLR for 1 year tenure from 9.10% to 9%. Additionally, the MCLR for 1-month, 3-month, and 6-month loans has been reduced to the range of 8.25% to 8.80%. This means that even short-term loans will now have lower interest rates, making borrowing more affordable.

When Will This Change Take Effect?

The interest rate cut will take effect from 12th May 2025. So, if you have a loan with Canara Bank, your EMI will reduce, and you will be paying less monthly.

Types of Loans Affected by This Change

The following types of loans provided by Canara Bank will be affected by the MCLR rate change:

Home Loans: Loans taken for purchasing or constructing a house.
Personal Loans: Loans taken for personal expenses.
Car Loans: Loans taken for buying a car.

These loans are linked to the MCLR, which is used to determine the interest rates. With the reduction in MCLR, you will now benefit from a lower interest rate on your loan.

Why Is This Cut Beneficial for Customers?

This interest rate reduction will benefit customers in multiple ways. With lower interest rates, your EMI (Equated Monthly Installment) will reduce, which means you will have to pay less every month. This makes repaying the loan easier and more affordable. If you are planning to take a new loan, you will also get a loan at a lower interest rate, making it cheaper.

Conclusion

Canara Bank’s move to reduce the MCLR brings relief to all customers who have taken home loans, personal loans, or car loans. With this interest rate cut, your monthly EMI will decrease, and repaying the loan will become easier. If you’re planning to take a new loan or want to reduce your existing loan’s interest rate, this is a great opportunity for you. The new interest rates will be effective from 12th May, and they could prove to be very beneficial for you.

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