Canara Bank, India’s second largest public sector bank, has raised the marginal cost of funds-based lending rate (MCLR) by 5 basis points (bps) across tenors, resulting in higher costs for consumer loans. This announcement comes a day after RBI retained its interest rate (repo) at 6.5 per cent for the ninth time.
The overnight MCLR has been hiked to 8.25 per cent from 8.20 per cent. The benchmark one-year tenor, which affects consumer loans, has been raised to 9 per cent, from the previous 8.95 per cent. The two-year and three-year MCLR have been adjusted to 9.30 per cent and 9.40 per cent, up from 9.25 and 9.35 per cent, respectively.
The interest rates will be come into effect from August 12. (With inputs from PTI)