Canara Bank cuts RLLR to 8.25%, making loans cheaper from June 12
In a move to boost borrower confidence, Canara Bank has reduced its Repo Linked Lending Rate (RLLR) from 8.75% to 8.25%, effective from June 12, 2025.
This comes in response to the recent 50 basis point reduction by the Reserve Bank of India (RBI), bringing it down to 5.5%. Therefore, by passing on the complete benefit to the loan aspiring applicants, Canara Bank has made loans cheaper across its entire portfolio.
Due to this move, interest rates on popular retail loans have been slashed. Home loans now start at 7.40% per annum, down from 7.90% whereas vehicle loans begin at 7.70% reduced from 8.20%. These lowered rates are expected to significantly reduce the EMIs on both existing and new borrowers. Thus making home and vehicle ownership more affordable and accessible for aspirational borrowers.
Furthermore, as the RLLR is directly linked to the repo rate cut by RBI, any monetary policy changes or adjustments are quickly reflected in the financial institutions lending rates. This ensures transparency, clarity and prompt relief for borrowers. Not only this, Canara Bank has also trimmed its Marginal Cost of Funds Based Lending Rate (MCLR) by a total of 20 basis points across all tenures. This will benefit borrowers with older loans linked to MCLR.
This move follows a broader trend by banks and financial institutions cutting lending rates after the RBI's policy action. All these steps cumulatively are aimed at stimulating demand in the credit market.
For Canara Bank the rate cut aligns with its strategy to support economic growth, boost investment and financial inclusion by enhancing the availability of credit.
Now with reduced rates across the board Canara Bank is encouraging individuals and businesses to check out their new loan products or even consider refinancing the existing ones. These steps are expected to provide timely financial relief and boost credit activity in the automobile and housing sector of the country.
Disclaimer: Loan rates and terms may vary and are subject to change by Canara Bank. Reach out to the official website of the bank and verify details. This is for informational purposes only.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
19 minutes ago
- Time of India
Can rupee recover from its worst fall in over a month due to rising oil prices?
Mumbai: The Indian rupee weakened by 60 paise to touch 86.20 per dollar on Friday, its worst fall in over a month due to rise in crude oil prices amid Israeli strike on Iran. The currency however closed stronger at 86.08 per dollar, likely due to intervention by the Reserve Bank of India , traders said. Rupee had closed at 85.60/$1 on Thursday. The 10-year bond yield touched 6.40% levels in the early hours of trading, before easing and closing at 6.36%, up two basis points from its previous close. The rupee traded between the range of 86.20/$1 to 85.93/$1, strengthening mildly in between due to central bank intervention and muted dollar sales by foreign banks, traders said. Agencies Brent crude oil prices rose to $75 per barrel on Friday, from $68 per barrel the day before as Israeli strikes on Iran's nuclear and military facilities hit risk sentiments. A rise in crude oil prices is inflationary for India and adds pressure on the rupee as the country is a major importer of the commodity. A $10 per barrel increase in crude oil prices can widen the current account deficit by 0.4% of the GDP and add up to 35 basis points in retail inflation, according to Reuters. Live Events The RBI likely sold dollars via state-run banks in the first half of the trading session, but in a muted manner, traders said. "The possible intervention by the RBI was only up to a certain level and did not make any effort to bring down to 85.70 levels. But a key resistance amid uncertainty in the Middle East would be at 86.25/$1 levels," said Anil Bhansali, head of treasury at Finrex Treasury Advisors. For bonds too, the mood was fragile amid geopolitical tensions, traders said. "Since there has been a selloff and the yields touched 6.40%, we will be able to see some buying next week," a bond trader at a primary dealership said.
Economic Times
19 minutes ago
- Economic Times
Can rupee recover from its worst fall in over a month due to rising oil prices?
Agencies Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: The Indian rupee weakened by 60 paise to touch 86.20 per dollar on Friday, its worst fall in over a month due to rise in crude oil prices amid Israeli strike on Iran. The currency however closed stronger at 86.08 per dollar, likely due to intervention by the Reserve Bank of India , traders said. Rupee had closed at 85.60/$1 on 10-year bond yield touched 6.40% levels in the early hours of trading, before easing and closing at 6.36%, up two basis points from its previous rupee traded between the range of 86.20/$1 to 85.93/$1, strengthening mildly in between due to central bank intervention and muted dollar sales by foreign banks, traders crude oil prices rose to $75 per barrel on Friday, from $68 per barrel the day before as Israeli strikes on Iran's nuclear and military facilities hit risk sentiments.A rise in crude oil prices is inflationary for India and adds pressure on the rupee as the country is a major importer of the commodity. A $10 per barrel increase in crude oil prices can widen the current account deficit by 0.4% of the GDP and add up to 35 basis points in retail inflation, according to RBI likely sold dollars via state-run banks in the first half of the trading session, but in a muted manner, traders said."The possible intervention by the RBI was only up to a certain level and did not make any effort to bring down to 85.70 levels. But a key resistance amid uncertainty in the Middle East would be at 86.25/$1 levels," said Anil Bhansali, head of treasury at Finrex Treasury bonds too, the mood was fragile amid geopolitical tensions, traders said. "Since there has been a selloff and the yields touched 6.40%, we will be able to see some buying next week," a bond trader at a primary dealership said.
Time of India
22 minutes ago
- Time of India
RBI cancels 30-year green bond auction amid high bids
Mumbai: The Reserve Bank of India cancelled the 30-year green bond auction despite receiving bids double the auction amount. The last time the central bank cancelled a green bond auction was in May 2024. The 30-year paper had a notified amount of ₹5,000 crore and received bids worth ₹10,943 crore in the auction scheduled on Friday. The bids for yields were likely higher than the RBIs comfort level, traders said. "We had a rate cut when the crude oil prices were low. But now the rupee has weakened so people would have wanted higher yields," said a chief investment officer from an insurance company. Bonds Corner Powered By RBI cancels 30-year green bond auction amid high bids The Reserve Bank of India (RBI) cancelled a ₹5,000 crore green bond auction for the 30-year paper, despite receiving bids exceeding ₹10,943 crore. This cancellation, the second this year, is attributed to bids with yields higher than the RBI's comfort level. Geopolitical tensions and a weakening rupee contributed to the increased pressure on bond yields, influencing investor expectations. India bond yields hit 5-week high as surging oil prices add to bearishness before auction RBI allows trading of state govt securities in STRIPS Banks see 15% rise in non-SLR investments in FY25 amid strong market returns India bond yields dip on value buying, fall in US peers Browse all Bonds News with Insurance companies are the primary takers of green bonds as they have to invest a minimum of 15% of their assets under management in the 'infrastructure and housing' category, as defined by Irdai. Since green bonds qualify for this, insurance companies have a natural demand. Geopolitical tensions in the Middle East have added pressure on bond yields . Israeli strike on Iran's nuclear and military facilities increased crude oil prices. "Today was just a bad day for this auction," a bond trader said. Live Events 10-year benchmark government security closed at 6.36%, up two basis points from its previous close.
