Canara Bank Hiked Lending Rates by 15 to 25 bps- Check Here

Canara Bank, one of the leading public sector lenders, increased its lending rates across tenures by 15 to 25 basis points. According to a bank press release, the bank's tenor-linked Marginal Cost of Funds Based Lending Rate (MCLR) as of January 7, 2023. Canara Bank has raised its Marginal Cost of Funds Based Lending Rate (MCFLR) (MCLR). According to the BSE filing, the new interest rates take effect on January 7, 2023.

Canara Bank MCLR

Canara Bank raised its 1-month MCLR rate by 20 basis points overnight, from 7.30% to 7.50%. The three-month MCLR was raised by 25 basis points to 7.85%, while the six-month MCLR was raised from 8.05% to 8.20%. The one-year MCLR was raised from 8.15% to 8.35% by the bank.

MCLR Tenor	Existing Rate	Rate w.e.f. 07.01.2023
Overnight MCLR	7.30%	7.50%
One Month MCLR	7.30%	7.50%
Three Month MCLR	7.60%	7.85%
Six Month MCLR	8.05%	8.20%
One year MCLR	8.15%	8.15%

The above MCLRs is applicable only to new loans/advances sanctioned/first disbursement made on or after 07.01.2023 and those credit facilities renewed/reviewed/reset undertaken on or after 07.01.2023 and where switchover to MCLR linked interest rate is permitted at the borrower's option on or after 07.01.2023. The MCLRs listed above will be in effect until the next review

Existing Bank borrowers have the option of switching to interest rates linked to the MCLR (other than Fixed Rate Loans).

Canara Bank's base rate is 8.95% as of 07.01.2023, and the Benchmark Prime Lending Rate (BPLR) is 14.45% as of 07.07.2022. The bank's Short Term Repo Linked Lending rate (STRLLR) is 6.25% as of 07.01.2023. "STRLLR is applicable for loans with tenors up to one year," Canara Bank said in a statement. Spreads will be charged in addition to the benchmark rate, depending on a variety of other factors."

Canara Bank's External Benchmark Lending Rate (EBLR2) is 6.25% as of January 7, 2023. According to the bank, EBLR2 is linked to the policy repo rate in order to transmit medium and long term interest rate movement to corporate clients in need of medium and long term credit.