Canara Bank Revised MCLR By 0.05%, Loans EMI Will Go Up

Public Sector Canara Bank Revised MCLR  By 0.05% across all tenors. The hike in Marginal Cost of Funds Based Lending Rate (MCLR) will impact the ongoing EMI which will Marginal Cost of Funds Based Lending Rate (MCLR) across all tenors by 5 basis points. The new MCLRs will go into effect on December 7, 2022. The minimal interest rate below which financial institutions cannot provide loans is referred to as MCLR (Marginal Cost of Funds Based Lending Rate). With the hike, the new and existing borrowers will have to pay more to maintain their auto, home, vehicle, and personal loans, which will cause their equated monthly installments (EMIs) to increase on the loan reset date.

On overnight to 1-month MCLR, the bank has hiked the interest rate by 5 bps from 7.25% to 7.30% and on 3 month MCLR, Canara Bank has hiked the interest rate by 5 bps from 7.55% to 7.60%. Canara Bank has hiked 6-month MCLR by 5 bps from 8.00% to 8.05% and the bank has also hiked 1-year MCLR by 5 bps from 8.10% to 8.15%.

Also Read – Canara Bank Loan Interest Rate Increased , EMI Will Go Up

The existing EMI of all the MCLR based loans will go up. The increase in MCLR will affect existing borrowers. Under the MCLR mechanism banks typically modify their interest rates as soon as the repo rate alters, indicating that MCLR rate hike of Canara Bank will hike floating rate loans for the borrowers. 

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