Canara Bank cuts MCLR by 10 basis points across all tenors
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New Delhi: Public sector lender Canara Bank has announced a reduction in its marginal cost of funds-based lending rate (MCLR) by 10 basis points (0.10 percentage points) across most tenors, effectively making loans linked to the benchmark rate cheaper for borrowers.
According to a regulatory filing made on Friday, the one-year MCLR, which serves as the benchmark for pricing a majority of consumer loans such as auto and personal loans, has been revised downward to 9 per cent from the previous rate of 9.10 per cent.
The rates for the other tenors have also been adjusted. The MCLR for one-month, three-month, and six-month durations will now range between 8.25 per cent and 8.80 per cent. Meanwhile, the overnight MCLR has been lowered to 8.20 per cent from the earlier 8.30 per cent.
The revised MCLR rates will take effect from May 12, the bank confirmed.
This development comes in the wake of the Reserve Bank of India’s decision last month to reduce its benchmark lending rate by 25 basis points, bringing it down to 6 per cent. The move marked the second consecutive rate cut by the RBI this calendar year.
With PTI inputs
