The Reserve Bank of India (RBI) recently cut the repo rate by 50 basis points (0.50%), reducing it from 6% to 5.50%. Banks are catching up. Following other major banks, Canara Bank's Repo Linked Lending Rate (RLLR) has now reduced from 8.75% to 8.25%.
The bank informed that the new rates will be effective from June 12, 2025. One's EMI will decrease or the loan period will be reduced, if one's loan is based on RLLR from Canara Bank.
The bank has taken this step with the aim of providing affordable credit facility to the customers.
Its direct benefit is given to the common people in the form of low interest rates on loans. At a time when inflation has softened a bit, this stance of RBI is helping to speed up economic activities
This is the third consecutive time in 2025 that the RBI reduced the repo rate. Cumulatively, the repo rate has been cut by 100 basis points since February this year.
Immediately after the RBI announcement, Punjab National Bank (PNB) and Bank of India (BOI) reduced their RLLR from 8.85% to 8.35%. At the same time, Bank of Baroda reduced its rates from 8.65% to 8.15%.Indian Bank reduced its RLLR from 8.70% to 8.20% and UCO Bank from 8.80% to 8.30%.
UCO Bank has also reduced MCLR by 10 basis points in all tenures.Talking about private banks, HDFC Bank has also reduced its MCLR by 10 basis points. Now HDFC’s one-year MCLR has become 8.90%. This will make home, personal and SME loans cheaper.
