Canara Bank Repo linked lending rate has been increased (rllr) and marginal cost of funds based lending rate (MCLRAccording to the official website of the bank, the new interest rates are effective from October 7, 2022.

Canara Bank MCLR

Canara Bank raised overnight rates by 15 basis points in one-month MCLR to 7.05% from 6.90%. The three-month MCLR has been increased by 15 bps to 7.40%, while the six-month MCLR has been increased to 7.80%. The bank increased the one-year MCLR to 7.90%.

Latest Canara Bank MCLR

Source: Canara Bank Website

Canara Bank RLLR

According to the Canara Bank website, “RLLR of the bank – 8.80% from 07.10.2022.” Earlier in September the RLLR was 8.30%.

RBI rate hike

On September 30, 2022, RBI increased the repo rate by 50 basis points to 5.9%. RBI has increased the repo rate four times in the current financial year.

After the Reserve Bank of India raised the repo rate by 50 basis points to 4.50 per cent in September, several banks are involved in State Bank Of India, ICICI Bank, Yes Bank And PNB increased its lending rates.

How EMI burden can be reduced

Borrowers should be prepared for further growth loan As interest rates rise, experts predict that the central bank will increase policy rates in the future. A borrower can choose to extend the tenure of the loan if he is unable to make the increased EMI payments.

It is important to remember that an increase in the loan tenure will result in a higher interest payment than an increase in the EMI payment.

Prepaying the loan balance is also an option. If a borrower is able to prepay a portion of the loan, the outstanding loan amount will be reduced. Based on the remaining loan balance, the bank will calculate the EMI once again. Until the interest rate is raised once again, the borrower will be responsible for paying this EMI.

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