In a recent move, Canara Bank has hiked its loan interest rates, affecting individuals seeking financial assistance.
This increase means borrowers will now face higher interest payments, impacting their finances significantly.
Interest Rate Hike
Canara Bank, a public sector bank, has raised its benchmark loan rates across various maturity periods by 0.05 percent.
This adjustment translates to an overall increase in the cost of bank loans.
MCLR Adjustment
As per information shared with stock exchanges, Canara Bank has increased its Marginal Cost of Funds Based Lending Rate (MCLR) by 0.05 percent for different maturity periods. This revised rate will come into effect from November 12.
Notably, the one-year MCLR will now be 8.75 percent, up from the previous 8.70 percent.
The one-year MCLR serves as the basis for determining interest rates on consumer loans such as vehicle loans, personal loans, and home loans.
Impact on Various Loans
The MCLR hike extends to different maturity periods, including one day, one month, three months, and six months.
This increase holds consequences for a variety of loans, including personal loans, car loans, bike loans, business loans, home loans, and education loans.
Financial Ramifications
For borrowers, this adjustment means a higher financial burden, as they will now be required to pay more in interest on their loans.
Canara Bank’s decision to raise interest rates is expected to have a substantial impact on the pockets of its customers, potentially influencing their financial plans and decisions.
