Bank of Baroda, Canara Bank Hike Rates; EMIs May Rise

Two big banks in India, Canara Bank and Bank of Baroda, have decided to make some loans more expensive.

They changed a number called MCLR, which is the lowest interest rate banks usually use for lending.

The new rates started on August 12, 2026.

This happened one week after the Reserve Bank of India kept its main interest rate steady at 5.25 percent.

People with home loans, car loans, or personal loans tied to MCLR may be affected.

Their monthly payments, called EMIs, could go up when their rate resets.

Sometimes banks keep the payment the same but instead extend the time you have to repay.

Loans based on other benchmarks, like the repo rate, will not be directly affected.

Canara Bank raised most of its rates a little, while Bank of Baroda changed only its three-month rate.

Borrowers should check their loan agreement to see if their payments will change.