Due to the continuous increase in the repo rates of the Reserve Bank of India, the loans of the banks are also becoming costlier day by day. Now Canara Bank of public sector has also changed its interest rates. Due to this the home loan of the bank has become expensive.
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Canara Bank (Canara Bank) Other loans including home loans are going to be expensive. Bank Repo Linked Lending Rate (RLLR) and MCLR (MCLR) Both have been amended, which will become effective from March 12 i.e. Monday. Due to this, the EMI of all types of loans of the bank will increase again and the burden on the pockets of the common people will increase.
Loans of most banks have become costlier due to the continuous increase in repo rates by the Reserve Bank of India. To control inflation, RBI has been continuously increasing the repo rate since May last year. Banks keep changing loan rates with changes in repo rates.
MCLR of Canara Bank
Canara Bank has increased the MCLR by up to 0.45 percent. Due to this, the interest rates of loans of different periods of the bank have changed.
- Now the interest rate of overnight loan of Canara Bank will be 7.90 percent instead of 7.55 percent.
- Similarly, the interest rate for loans for a period of 1 month will be 8.00 percent instead of 7.55 percent.
- The interest rate on loans with a tenure of three months will be 8.15 percent instead of 7.90 percent.
- The interest rate for loans for a period of 6 months will be 8.40 percent instead of 8.30 percent.
- While the interest rate for loans of 1 year or more will be 8.60 percent instead of 8.50 percent.
Difference between MCLR and RLLR
Apart from this, the bank has also increased the RLLR. which from now on 9.25 percent Will be According to the bank’s website, the interest rate of all its retail loan schemes is fixed on the basis of RLLR only. According to the rules of the Reserve Bank, banks have to fix their loan interest rates by linking them to an external standard. In such a situation, many banks decide the loan interest rates only by linking them to the repo rate of RBI. Whereas MCLR is the minimum interest rate of the bank, below which it cannot give loan.
Before Canara Bank, HDFC Bank, ICICI Bank, Punjab National Bank, Bank of India and Yes Bank have also changed their loan interest rates.
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