Archive · 13 Jun 2025
Canara Bank Lowers Lending Rates Following RBI Rate Cut
Canara Bank has made loans cheaper.
They lowered the interest rates for home and car loans because the Reserve Bank of India (RBI) reduced a key interest rate.
This means people who borrow money from Canara Bank will pay less interest, leading to lower monthly payments.
Other banks are also making similar changes.
This is expected to encourage more borrowing and boost the economy.
Canara Bank reduced its Repo-Linked Lending Rate (RLLR) to 8.25% effective June 12.
The rate cut follows the RBI's 50 basis point reduction of the repo rate to 5.50%.
Home loan interest rates now start at 7.40%, and vehicle loans at 7.70%.
The bank also reduced its Marginal Cost of Funds Based Lending Rate (MCLR) by up to 20 basis points.
Other banks, including PNB and Bank of Baroda, have also reduced their lending rates.
- Who
- Canara Bank
- What
- Canara Bank reduced its Repo-Linked Lending Rate (RLLR).
- When
- Effective June 12, 2025.
- Where
- India
- Why
- To pass on the benefit of RBI's repo rate cut and stimulate credit growth.
- RLLR (Before)
- 8.75%
- RLLR (After)
- 8.25%
- RBI Repo Rate
- 5.50%
- Home Loan Rate (Starting)
- 7.40%
- Vehicle Loan Rate (Starting)
- 7.70%
Sources
Bank of Maharashtra slashes its retail loan rates by 50 bps
FD interest rates: After RBI's rate cut, top 8 banks offer THESE rates on their 1-year fixed deposits
RBI’s Jumbo Rate Cuts & What It Means for Your Mutual Fund Portfolio
After RBI’s Repo Cut, These Banks Have Reduced Fixed Deposit Rates
Canara Bank cuts RLLR to 8.25%, making loans cheaper from June 12
