public sector Canara Bank on Thursday announced an increase of 5 basis points i.e. 0.05 percent in MCLR of different maturity periods. Due to this decision of Canara Bank, most of the consumer loans have become expensive. Canara Bank said in a regulatory filing that the new interest rates will be applicable from October 12. Canara Bank said that the interest rate of MCLR with one year period has been increased from 9.00 percent to 9.05 percent. Let us tell you that the interest rates on auto and personal loans are decided on the basis of MCLR.
Loans become expensive even for loans with a tenure of 1 day
Canara Bank said that the interest rates for maturity periods of 1 month, 3 months and 6 months will be in the range of 8.40-8.85 percent. MCLR for one day loan has been increased from 8.25 to 8.30 percent. The decision of this latest increase in interest rates by Canara Bank has been taken just a day after the Reserve Bank of India announced to maintain the repo rate at 6.5 percent for the 10th consecutive time.
Canara Bank had increased interest rates even 2 months ago
Let us tell you that Canara Bank has increased the loan interest rates for the second time in 2 months. Earlier, on August 9, 2024, Canara Bank had also increased MCLR by 5 basis points i.e. 0.05 percent. In August, Canara Bank had increased the benchmark one-year tenure MCLR from 8.95 per cent to 9.00 per cent. Due to the latest increase in interest rates by the bank, taking loan will become costlier for the customers by 0.10 percent. The loan which was available at an interest rate of 8.95 percent till 2 months ago, will now be available at an interest rate of 9.05 percent.
