Canara Bank has cut the Marginal Cost of Funds Best Lending Rate (MCLR) by up to 0.15 percent. The new rates will be applicable from October 7.
In the festive season, the public sector Canara Bank has given a big gift to its customers. Canara Bank has cut the Marginal Cost of Funds Best Lending Rate (MCLR) by up to 0.15 percent. The new rates will be applicable from October 7. The bank said that the MCLR for overnight and one month has been reduced by 0.15 percent to 6.55 percent. Most of the consumer loans like personal loans, auto loans and home loans are based on one year MCLR.
The MCLR has been reduced by 0.10 per cent to 7.25 per cent for a period of one year. This will give relief to the bank’s home loan and car loan customers. Meanwhile, DCB Bank has also cut its MCLR by 0.05 percent with effect from 6 October.
What is MCLR?
When you take a loan from a bank, the minimum rate of interest charged by the bank is called the base rate. The bank cannot give loan to anyone at a rate lower than the base rate. In place of this base rate, now banks are using MCLR. It is calculated on the basis of marginal cost of funds, term premium, operating expenses and cost of maintaining cash reserves ratio.
These banks are also offering
Among the big banks of the country, State Bank (SBI), ICICI Bank, Punjab National Bank, Kotak Mahindra Bank, Bank of Baroda (BoB) and Yes Bank are offering attractive offers on home loans. All these banks are offering substantial discounts on the interest rate of the home loan. For the first time, State Bank has announced a credit score linked home loan, which is being given at the rate of 6.70 percent. Irrespective of the loan amount, the rate of interest is fixed at 6.70 per cent. Earlier, customers who had taken a home loan of more than Rs 75 lakh had to pay 7.15 percent interest. Now the same interest has come to 6.70 percent.
Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.