Canara Bank Slashes Repo Linked Lending Rate to Benefit Home and Personal Loan Customers

Following the RBI's repo rate cut, Canara Bank has reduced its Repo Linked Lending Rate (RLLR) from 8.75% to 8.25%. This move will translate to lower EMIs or shorter loan tenures for borrowers, providing significant relief to home and personal loan customers. The new rates will be effective from June 12, 2025.

Key Takeaways:

Canara Bank has reduced its Repo Linked Lending Rate (RLLR) from 8.75% to 8.25% following the RBI's repo rate cut.
The new rates will be effective from June 12, 2025, and will reduce EMIs or loan tenures for borrowers.
Retail loans like home loans, personal loans, and auto loans are usually linked to RLLR, which is directly linked to the repo rate of the Reserve Bank of India (RBI).
Other government and private banks, such as Punjab National Bank (PNB), Bank of India (BOI), Bank of Baroda, Indian Bank, and UCO Bank, have also reduced their RLLR and MCLR rates.
HDFC Bank, a private bank, has reduced its MCLR by 10 basis points, making home, personal, and SME loans cheaper.
The reduction in interest rates is expected to benefit everyone, including employed individuals, businessmen, and the middle class, by improving their monthly budgets and increasing the chances of taking a new loan.

Statistics:

Canara Bank's RLLR has been reduced by 0.50%, from 8.75% to 8.25%.
The RBI has cut the repo rate by 50 basis points (0.50%), reducing it from 6% to 5.50%.
The cumulative repo rate has been cut by 100 basis points since February this year.
Of the banks mentioned, HDFC Bank's one-year MCLR has been reduced to 8.90%, while UCO Bank has reduced MCLR by 10 basis points in all tenures.
Indian Bank and UCO Bank have reduced their RLLR by 0.50%, from 8.70% to 8.20% and 8.80% to 8.30%, respectively.

Sources:

Reserve Bank of India (RBI)
Canara Bank
Punjab National Bank (PNB)
Bank of India (BOI)
Bank of Baroda
Indian Bank
UCO Bank
HDFC Bank