Canara Bank lowers RLLR to 8.25%, reducing loan costs starting June 12

Kanara Bank Lowers Loan Rates to Enhance Borrower Trust

Kanara Bank has decided to lower its Repository Link Loan Rate (RLLR) from 8.75% to 8.25%, effective June 12th, 2025. This change aims to boost borrower confidence.

The adjustment comes after the Reserve Bank of India (RBI) recently cut rates by 50 basis points. As a result, Kanara Bank has effectively reduced the cost of loans, making them more accessible for those looking to borrow.

This reduction has led to lower interest rates on various retail loans. Currently, mortgage rates have dropped to 7.40%, down from 7.90%, while vehicle loan rates have decreased from 8.20% to 7.70%. These reductions are expected to ease the EMI burden for both new and existing borrowers, making home and vehicle ownership more affordable.

Additionally, the RLLR is directly influenced by changes in the repo rate set by the RBI, allowing for quicker adjustments in lending rates based on monetary policy shifts. This provides borrowers with a transparent and straightforward borrowing experience. Kanara Bank has also reduced its Marginal Cost of Funds-based Lending Rate (MCLR) by 20 basis points across all loan tenures, which should benefit those with older MCLR-linked loans.

Reasons Behind the Rate Cut

The decision to lower rates aligns with a wider trend where banks and financial institutions are responding to RBI’s policy changes by reducing interest rates. These measures collectively aim to stimulate demand in the credit market.

For Kanara Bank, these interest rate cuts support strategies that enhance economic growth, foster investment, and promote financial inclusion by improving access to credit.

At present, Kanara Bank is fully committed to encouraging both individuals and businesses to explore new loan options or consider refinancing their existing loans. This initiative is anticipated to provide timely financial relief in the auto and housing sectors while stimulating credit activity.

Disclaimer: Loan fees and terms may vary and are subject to change by Kanara Bank. For more information, please visit the bank’s official website. This content is for informational purposes only.