Canara Bank Hikes MCLR From Today; Home, Auto, Personal Loan EMIs To Go Up

New Delhi: Canara Bank has hiked marginal cost of funding-based lending rate (MCLR) across all tenors. The new MCLR rates will be applicable from 12 April 2023, Canara Bank said.

Effective from 12.04.2023, the tenor linked MCLRs of the Bank are as under:

SL. NO	TENOR OF MCLR	MCLR
1.	Overnight MCLR	7.90%
2.	One Month MCLR	8.00%
3.	Three Month MCLR	8.15%
4.	Six Month MCLR	8.45%
5.	One year MCLR	8.65%

"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 website said. 

Canara Bank also added that 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 said.

Several banks have hiked their MCLR rates recently after the Reserve Bank of India (RBI) on April 6 announced its key policy rates. Even though inflation is heading above its tolerance level, the RBI announcing its bi-monthly monetary policy on April 6 chose to hit the pause button and maintain its important benchmark policy rate at 6.5 percent.

After six consecutive rate rises totaling 250 basis points since May 2022, the rate hike was put on hold.

The Monetary Policy Committee (MPC), according to RBI Governor Shaktikanta Das, will not hesitate to act in the future while announcing the bi-monthly monetary policy.