State-owned Canara Bank on Saturday announced reduction in its repo-linked lending rate (RLLR) by 40 basis points (bps) to 6.90 percent.
Meanwhile, the Bengaluru-based bank also slashed its marginal cost of fund-based lending rate (MCLR) by 20 basis points across various tenors.
The revised lending rates will be effective from June 7, Canara Bank said in a statement.
All new retail loans (housing, education, vehicle), credit to MSMEs are linked to RLLR.
Many banks have passed on the benefit of reduction in 40 bps in repo rate announced by the Reserve Bank of India in May through cuts in their RLLR.
Recently, some lenders, including Punjab National Bank, Bank of India and UCO Bank, slashed their lending rates linked to repo rate by 40 bps.
With the reduction, it said the one-year MCLR has been revised down to 7.65 percent from existing 7.58 percent. For six months, the rate has been reduced to 7.60 percent.
Overnight and one-month MCLRs have been reduced by 20 basis points to 7.30 percent each. Six-month MCLR has been revised to 7.55 percent from 7.75 percent.
The reduction in MCLR will bring down burden on borrowers.
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