Canara Bank Raises Lending Rate by 5 bps | Consumer Loans Costlier

New Delhi, Aug 9 (PTI) State-owned Canara Bank on Friday raised the marginal cost of funds-based lending rate (MCLR) by 5 basis points (0.05 percentage point), across tenors, making most of the consumer loans costlier.

The benchmark one-year tenor MCLR, which is used to price most consumer loans such as auto and personal, will be at 9 per cent against the earlier rate of 8.95 per cent, Canara Bank said in a regulatory filing.

The three-year MCLR will be 9.40 per cent, while for two-year will be 9.30 per cent, up 5 basis points.

Among others, the rate of one month, three month and six month tenors will be in the range of 8.35-8.80 per cent. The MCLR on overnight tenor will be 8.25 per cent against 8.20 per cent.

The new rates are effective from August 12, 2024.

The rate hike has come a day after RBI kept its benchmark lending rate unchanged at 6.5 per cent for the ninth consecutive time.