Canara Bank Cuts MCLR Rate by 10 bps, Loans Cheaper

New Delhi, May 10 (PTI) State-owned Canara Bank has announced slashing the marginal cost of funds-based lending rate (MCLR) by 10 basis points (0.10 percentage points) across most tenors, making loans linked to the benchmark cheaper.

The benchmark one-year tenor MCLR, which is used to price most consumer loans like auto and personal, will be at 9 per cent against the existing rate of 9.10 per cent, Canara Bank said in a regulatory filing on Friday.

Among others, the rate of one-month, three-month, and six-month tenors will be in the range of 8.25-8.80 per cent. The MCLR on overnight tenor will be 8.20 per cent against 8.30 per cent.

The new Marginal Cost of Funds Based Lending Rate (MCLR) of the bank with effect from April 12, it said.

It is to be noted that the Reserve Bank of India (RBI) last month slashed its benchmark lending rate by 25 basis points to 6 per cent. This reduction marks the second consecutive rate cut this year.