Ajit Karn
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Public sector Canara Bank has decided to increase the Marginal Cost of Lending Rates (MCLR). MCLR has been increased by 15-25 basis points for different tenure loans. The new rate will be effective from January 7. Overnight MCLR has been reduced to 7.50 per cent. Earlier it was 7.30 percent. It has been increased by 20 basis points. One month MCLR has also been made 7.50 percent. The three-month MCLR has now been reduced to 7.85 per cent. Earlier it was 7.60 percent. It has been increased by 25 basis points. From January 7, Repo Linked Lending Rates ie RPLR has become 9.15 percent.
1 year standard MCLR now 8.35 percent
The bank has increased the MCLR to 8.20 per cent for six months. Earlier it was 8.05 percent. It has been increased by 15 basis points. The one-year standard MCLR has now been increased to 8.35 per cent. Earlier it was 8.15 percent. In this way, it has been increased by 20 basis points. Earlier in the first week of December, the bank had increased the MCLR by 5 basis points for all tenures.
According to the information released by the bank, the effect of revision in MCLR will be only on those loans or advances whose sanction or first disbursement is done on or after January 7, 2023. The existing borrowers of the bank have the option to switch from fixed rate of loan and get their loan transferred to interest rate linked MCLR.
EMI will increase every month
If someone has taken a home loan, car loan or personal loan from the bank and it is linked to MCLR, then it will affect their EMI. The EMI going every month will increase. Since May till now, the Reserve Bank has increased the repo rate by 2.25 percent. Presently it is 6.25 per cent. It is believed that another hike is possible when the Reserve Bank Monetary Policy Committee meets in February.
