Canara Bank hikes lending rate by 5 bps across tenors

New Delhi: State-owned Canara Bank on Friday raised the marginal cost of funds-based lending rate (MCLR) by 5 basis points (0.05 percentage point), across tenors, making most of the consumer loans costlier.

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The benchmark one-year tenor MCLR, which is used to price most consumer loans such as auto and personal, will be at 9 percent against the earlier rate of 8.95 percent, Canara Bank said in a regulatory filing.

The three-year MCLR will be 9.40 percent, while for two-year will be 9.30 percent, up 5 basis points.

Among others, the rate of one month, three month and six month tenors will be in the range of 8.35-8.80 percent. The MCLR on overnight tenor will be 8.25 percent against 8.20 percent.

The new rates are effective from August 12, 2024.

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

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