The marginal cost of funds-based lending rate (MCLR) at Canara Bank, one of India’s largest public sector banks, has increased by 5 basis points. On April 12, 2023, the new rates came into effect.
The MCLR for six months has been raised to 8.45 percent, and the MCLR for one year has been raised to 8.65 percent. The rates for other tenures have not changed. The short-term MCLR remains at 7.90 percent, one-month MCLR at 8%, and three-month MCLR at 8.15 percent.
The bank made it clear that the new MCLRs would only apply to new loans that were first paid out on or after April 12, 2023, as well as credit facilities that were renewed or reset on or after that date.
Other than fixed-rate loans, existing borrowers can switch to MCLR-linked interest rates. However, with the borrower’s consent, the bank has retained the option of switching to MCLR-based interest rates.
In a notice, the bank expressed that the new MCLR rates would be powerful until the following survey. Borrowers ready to change to the MCLR-based loan fee might contact their closest Canara Bank office. The bank is expecting that the expanded MCLR will help with supporting its monetary solidness and lift productivity.
