Archive · 14 Jun 2025
Canara Bank Cuts Home, Vehicle Loan Rates Following RBI Cut
Imagine that the RBI, which controls how much banks charge, has made it cheaper for banks to borrow money.
Canara Bank is one of the banks lowering their interest rates on home and car loans, making it easier for people to afford them.
This is because the RBI cut a key interest rate.
Other banks are also dropping their rates, so now there's more competition, and it benefits people looking for loans.
Banks also offer different ways to calculate interest, like fixed or floating, but repo-linked is now the most popular option.
Canara Bank reduced its Repo Linked Lending Rate (RLLR) from 8.75% to 8.25%.
The minimum interest rate for home loans has decreased to 7.40%.
Vehicle loans are now available at 7.70% interest.
The Reserve Bank of India (RBI) recently cut the repo rate by 0.50%, bringing it to 5.50%.
Other banks like PNB, Bank of India, and Bank of Baroda have also reduced their RLLR.
- Who
- Canara Bank is the primary entity making these changes, influenced by the Reserve Bank of India (RBI).
- What
- Canara Bank reduced interest rates on home and vehicle loans.
- When
- The new rates came into effect from June 12, 2025, following the RBI's recent repo rate cut.
- Where
- Canara Bank is making these changes.
- Why
- To make loans more affordable for customers and respond to the RBI's repo rate cut, increasing competitiveness.
- Canara Bank RLLR (Old)
- 8.75%
- Canara Bank RLLR (New)
- 8.25%
- Minimum Home Loan Rate
- 7.40%
- Vehicle Loan Rate
- 7.70%
- RBI Repo Rate
- 5.50%
- Effective Date
- June 12, 2025
