Canara Bank’s Rate Reset: One-Year MCLR Slashed to 9.00%

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Canara Bank has lowered its Marginal Cost of Funds-Based Lending Rate (MCLR) for one-year tenor, from 9.10% to 9.00%, with effect from May 12, 2025. The action is a normal revision of the lending rates of the bank and is likely to impact the borrowers having loans under the MCLR regime.

The cut is in the context of shifting market conditions and monetary policy actions, as part of the bank's policy of providing competitive lending rates. The one-year MCLR is a benchmark for most loan products like home loans and corporate loans and influences interest rates on new and existing accounts.

Canara Bank's recent action follows comparable adjustments by other financiers, with banks reacting to cost of funds and liquidity conditions. Borrowers who have MCLR-linked loans should check their repayment cycles and try to estimate possible changes in their EMI burden.

More information is available on the website of Canara Bank or can be obtained by visiting their branch.

Source: Canara Bank