In a bid to ease the financial burden on its customers, Canara Bank has announced a reduction in its lending rates. The bank has lowered its Repo Linked Lending Rate (RLLR) by 25 basis points, following the Reserve Bank of India’s (RBI) recent decision to slash key interest rates. This move is expected to bring direct benefits to borrowers by making loans more affordable. The revised rates will be effective from April 12, 2025.
With the reduced RLLR, the minimum rate of interest for all loans has been lowered. The popular loan products, such as housing loans and vehicle loans, will now start at 7.90% per annum and 8.20% per annum, respectively. This rate revision is expected to lower Equated Monthly Installments (EMIs) for both existing and new borrowers, making it more affordable for customers to purchase a! house or vehicle.
The RBI had earlier announced a reduction in interest rates for the second time, bringing massive relief to home and auto loan borrowers. The six-member Monetary Policy Committee (MPC) meeting, led by new RBI Governor Sanjay Malhotra, unanimously decided to slash the policy rate by 25 basis points to 6.25%. This move is seen as a positive step towards making credit more accessible and helping customers achieve their financial goals.
Canara Bank has stated that this move reaffirms its commitment to making credit more accessible and ensuring timely transmission of policy rate cuts. The bank continues to align its offerings with customer needs, making it easier for them to move forward with their dreams and financial goals. With the reduced lending rates, Canara Bank aims to provide relief to its customers and support their financial aspirations. Overall, this move is expected to have a positive impact on the banking sector and the economy as a whole.