Canara Bank cuts RLLR to 8.25%, making loans cheaper from June 12
This comes in response to the recent 50 basis point reduction by the Reserve Bank of India (RBI), bringing it down to 5.5%. Therefore, by passing on the complete benefit to the loan aspiring applicants, Canara Bank has made loans cheaper across its entire portfolio.
Due to this move, interest rates on popular retail loans have been slashed. Home loans now start at 7.40% per annum, down from 7.90% whereas vehicle loans begin at 7.70% reduced from 8.20%. These lowered rates are expected to significantly reduce the EMIs on both existing and new borrowers. Thus making home and vehicle ownership more affordable and accessible for aspirational borrowers.
Furthermore, as the RLLR is directly linked to the repo rate cut by RBI, any monetary policy changes or adjustments are quickly reflected in the financial institutions lending rates. This ensures transparency, clarity and prompt relief for borrowers. Not only this, Canara Bank has also trimmed its Marginal Cost of Funds Based Lending Rate (MCLR) by a total of 20 basis points across all tenures. This will benefit borrowers with older loans linked to MCLR.
This move follows a broader trend by banks and financial institutions cutting lending rates after the RBI's policy action. All these steps cumulatively are aimed at stimulating demand in the credit market.
For Canara Bank the rate cut aligns with its strategy to support economic growth, boost investment and financial inclusion by enhancing the availability of credit.
Now with reduced rates across the board Canara Bank is encouraging individuals and businesses to check out their new loan products or even consider refinancing the existing ones. These steps are expected to provide timely financial relief and boost credit activity in the automobile and housing sector of the country.
Disclaimer: Loan rates and terms may vary and are subject to change by Canara Bank. Reach out to the official website of the bank and verify details. This is for informational purposes only.
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