To pass on the benefit of reduction in interest rates effected by the RBI, Canara Bank has cut its marginal cost of fund-based lending rate (MCLR) by 10 basis points across all tenors, effective from August 7.
With this revision, Canara Bank has cumulatively reduced its MCLR by 20 bps during the last six months and thus, one-year MCLR has come down to 8.50 per cent per annum from 8.70 per cent earlier.
The Bengaluru-headquartered bank said it would be announcing further reduction in lending rates soon.
Canara bank would be rolling out repo rate linked loan products shortly.
With this, the customers desirous of floating rate loans will have two options -- MCLR-linked loans or repo rate-linked loans.
A customer opting for the repo rate-linked loan will get a direct benefit whenever the RBI cuts the repo rate, it was noted.