A "low interest" loan shouldn't mean you have very little interest in paying it back!
  • Canara Bank MCLR

    Canara Bank is one the top banks in India that offers innovative and flexible financial products and services. Just like the other leading banks in this country, Canara Bank too has revised the Marginal Cost of Funds Based Lending Rate (MCLR) making housing loan more affordable for their customers.

    Current Canara Bank MCLR Rates:

    These are the MCLR rates effective from 7 October 2021:

    Tenure Canara Bank MCLR Rates
    1 year 7.25%
    6 months 7.20%
    3 months 6.85%
    1 month 6.55%
    Overnight 6.55%

    Latest Updates About Canara Bank MCLR Rates:

    The Canara Bank Marginal Cost of funds based Lending Rates (MCLR) has been recently revised.The new rates are effective from 7 October 2021. The MCLR has been revised across tenures and ranges between 6.55% to 7.25% depending on the loan maturity.

    How to Switch to Canara Bank MCLR Rate from Canara Bank Base Rate:

    There are 2 steps involved in process if switching from Canara Bank Home Loan base rate to Canara Bank home loan MCLR rate:

    • Send a written request to the bank so that they initiate the process of linking your housing loan to MCLR.
    • After marginal cost of funds based lending rate is linked to your home loan, request your lender to bring the quantum of spread down. At this point, a processing fee is levied to carry out this step, post which the housing loan rate will be refreshed as per the MCLR.

    What Should the Existing Borrowers Do?

    The benefit offered by marginal cost of funds based lending rate will not be reflected right away on the present regime. Most of the housing loan agreements associated with MCLR renew after a period of 12 months. The existing borrowers of Canara Bank home loan will have to wait till the rates have been reset. The new rate on the reset date will be determined by the MCLR rate cuts over the past 6 to 12 months.

    Canara Bank Home Loan Rate and MCLR:

    • All the floating rate home loans that are sanctioned by the bank is benchmarked to the marginal cost of funds based lending rate for a specific tenure, like 6 months, 3 months or 1 month.
    • Overnight loans, cash credit, etc. are the shorter duration loans and they are linked to the shorter period MCLR. The longer period loans like vehicle loan, home loan, etc. are linked to the longer duration marginal cost of funds based lending rates.
    • The applicable interest rate on floating rate housing loan has 2 parts – margin/spread above benchmark and applicable benchmark rate.

    Canara Bank MCLR Rates History:

    Revision Date 1 Year MCLR 6 Months MCLR 3 Months MCLR 1 Month MCLR Overnight MCLR
    7 February 2021 7.35% 7.30% 6.95% 6.70% 6.70%
    7 November 2020 7.35% 7.30% 6.95% 6.80% 6.80%
    7 October 2020 7.40% 7.35% 7.10% 6.95% 6.95%
    7 September 2020 7.40% 7.35% 7.10% 6.95% 6.95%
    7 August 2020 7.45% 7.40% 7.15% 7.00% 7.00%
    7 June 2020 7.65% 7.60% 7.55% 7.30% 7.30%
    7 May 2020 7.85% 7.80% 7.75% 7.50% 7.50%
    7 August 2019 8.50% 8.50% 8.35% 8.30% 8.25%
    7 March, 2019 8.70% 8.55% 8.45% 8.35% 8.30%
    7 February, 2019 8.70% 8.55% 8.45% 8.35% 8.30%
    7 January, 2019 8.70% 8.55% 8.45% 8.35% 8.30%

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    This Page is BLOCKED as it is using Iframes.