Canara Bank has increased its lending rates across tenures by 15 to 25 basis points.

The state-owned bank's revised tenor-linked marginal cost of funds-based lending rate (MCLR) is effective from 7 January.

The overnight to 1-month MCLR increased by 20 basis points to 7.50%. The 3-month MCLR increased by 25 basis points to 7.85%, six-month MCLR by 15 basis points to8.20% and the 1-year MCLR by 20 basis points to 8.35%.

“The above MCLRs shall be applicable only to new loans/advances sanctioned/first disbursement made on or after 07.01.2023 and those credit facilities renewed / reviewed / reset undertaken and where switchover to MCLR linked interest rate is permitted at the option of the borrower, on or after 07.01.2023. The above MCLRs will be effective till next review," Canara Bank said in a release.

“Existing borrowers of the bank shall have an option to switch over to interest rates linked to MCLR (other than Fixed Rate Loans). Borrowers willing to switch over to the MCLR based interest rate may contact the branch," the bank further stated.

With effect from 7 January 2023, Canara Bank’s base rate is 8.95%, Benchmark Prime Lending Rate (BPLR) is 14.45% effective as of 7 July 2022. With effect from 7 January 2023, the bank’s Short Term Repo Linked Lending rate (STRLLR) is 6.25%. 

Canara Bank said in a statement that “STRLLR is applicable for loans having tenor up to 1 year. Spread shall be charged over and above the benchmark rate depending upon various other factors."

With effect from 7 January 2023, Canara Bank’s External Benchmark Lending Rate (EBLR2) is 6.25%. According to the bank, EBLR2 is linked to policy Repo Rate in order to transmit medium & long term interest rate movement to the corporate clients requiring medium and long term credit.

Repo linked lending rate increased by 35 basis points from 8.80% to 9.15%. The revised rates will be effective from 7 January 2023.