Canara Bank Raises Lending Rate, Impacting Auto And Personal Loans

State-owned Canara Bank on Thursday raised the marginal cost of funds-based lending rate by 5 basis points (0.05% points) across most tenors, making most of the consumer loans costlier. The benchmark one-year tenor MCLR, which is used to price most consumer loans like auto and personal, will be at 9.05% against the earlier rate of 9%, Canara Bank said in a regulatory filing.

Among others, the rate of one-month, three-month and six-month tenors will be in the range of 8.40-8.85%. The MCLR on overnight tenor will be 8.30% against 8.25%.

The new rates are effective from Oct. 12, 2024.

The rate hike has come a day after the RBI kept its benchmark lending rate unchanged at 6.5% for the ninth consecutive time.