Good News for Loan Borrowers! THIS Public Bank Reduces Lending Rate by 15 bps

New Delhi: In a move to offer good news to loan borrowers, Canara Bank has lowered lending rates by 15 basis points, despite the Reserve Bank of India increasing the repo rate by 25 basis points (bps). In a regulatory statement on Friday, Canara Bank reported that starting on February 12, it's Repo' Linked Lending Rate (RLLR) has changed.

Rates of Interest of All Retail Lending Schemes are Linked to REPO Linked Lending Rate RLLR of the Bank - 9.25 percent as of 12.02.2023, according to the Canara Bank website. A day after the Reserve Bank of India raised the repo rate, on February 9, 2023, Canara Bank updated its RLLR to 9.4 percent. (Also Read: Residents of THIS Indian State Don't Pay Income Taxes! Why are Natives Exempted? - Check)

On a loan for a house valued at 9.25 percent, the bank offers a 0.25 percent discount. Only Low-Risk Borrowers who receive new housing loans (all versions) that are sanctioned and disbursed between January 1, 2023, and March 31, 2023, will be eligible for the aforementioned concession. (Also Read: SBI vs ICICI vs HDFC vs PPF FD Rates 2023: Here's Comparison of Latest Fixed Deposit Interest Rate)

Mortgage interest rates change based on the credit risk premium over RLLR. The rate will be 9 percent if the borrower is a woman and the credit risk is NIL. For other people, it is 9.05 percent. The rate that applies will be 9.30 percent if there is a 0.05 credit risk associated with a female borrower. 9.35 percent for other persons.

The rate that applies will be 9.7 percent if a woman borrower has a credit risk of 0.45. For other people, it is 9.75 percent.  Prior to February 9, 2023, the Canara Bank website said that "Rates of Interest on All Retail Lending Schemes Were 9.4 percent Effective.