Canara Bank says existing borrowers have the option to switch over to interest rates linked to MCLR from fixed rates.
Canara Bank has hiked the MCLR rate for tenures of six months and one year to 8.45 per cent and 8.65 per cent, respectively
Canara Bank has hiked its marginal cost of funds-based lending rate, or MCLR , by 5 basis points with effect from April 12, Wednesday. One basis point is equal to the 100th of a percentage point. According to Canara Bank’s website, the bank has hiked the MCLR rate for tenures of six months and one year to 8.45 per cent and 8.65 per cent, respectively. MCLR for other tenures has been kept unchanged.
According to the bank’s website, overnight MCLR stands at 7.90 per cent, one-month MCLR at 8 per cent, three-month MCLR at 8.15 per cent, six-month MCLR at 8.45 per cent, and one-year MCLR at 8.65 per cent.
“The above MCLRs shall be applicable only to new loans/advances sanctioned/first disbursement made on or after 12.04.2023 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 12.04.2023. The above MCLRs will be effective till next review,” Canara Bank said in a notification.
It also said existing borrowers of the bank will 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.
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