In a significant move for borrowers, Canara Bank has announced a reduction in its Repo Linked Lending Rate (RLLR) from 8.75% to 8.25%. This decision comes on the heels of the Reserve Bank of India’s latest repo rate cut, and it aims to make loans more affordable for customers.
K Satyanarayana Raju, the Managing Director and CEO of Canara Bank, shared this exciting news during a press conference. Effective from June 12, 2025, if you have a loan based on RLLR from Canara Bank, you can expect either a decrease in your Equated Monthly Installment (EMI) or a reduction in the overall loan period. This initiative reflects the bank’s commitment to providing accessible credit facilities to its customers.
But what exactly is the Repo Linked Lending Rate? In simple terms, the RLLR is the interest rate that is directly tied to the repo rate set by the Reserve Bank of India (RBI). This means when the RBI lowers its repo rate, banks like Canara Bank can decrease their interest rates accordingly. With this recent adjustment, the lower rates will undoubtedly benefit many consumers.
The good news doesn’t stop there. Along with the RLLR reduction, the minimum interest rates across all loans offered by Canara Bank have also been lowered. Popular loan products have seen substantial cuts. For instance, housing loans have seen a decrease from 7.90% per annum to 7.40% per annum. Vehicle loans aren’t far behind, dropping from 8.20% per annum to 7.70% per annum. These changes make loans more affordable, translating into real savings for customers.
Transparency is key in the lending industry, and this move enhances clarity around interest rates. The benefits of these changes are immediate. Retail loans, including home loans, personal loans, and auto loans, are commonly linked to the RLLR, so customers will feel the impact quickly.
This rate cut marks the third consecutive reduction in 2025 by the RBI. Since February this year, the cumulative reduction totals 100 basis points. These adjustments reflect a proactive strategy to support economic growth, especially at a time when inflation has begun to soften a bit. By lowering the repo rate, the RBI is not just helping borrowers; it is igniting economic activities that can have broader implications for the market.
As the lending landscape shifts, borrowers should take note of these changes. Whether you’re considering a home purchase, a vehicle upgrade, or just looking for personal loan options, the recent announcements by Canara Bank will likely have a positive influence.
With these lower interest rates, it may also be a good time for potential homebuyers to act. The housing market tends to respond favorably when interest rates drop, making now an ideal opportunity to secure a mortgage before rates potentially increase again in the future.
In sum, Canara Bank’s decision to cut interest rates is a noteworthy development for anyone considering taking out a loan. This move not only benefits individual borrowers but could also stimulate broader economic activity. As the RBI continues to adjust its repo rate, the ripple effects will be felt across various sectors.
So, if you’re looking for a loan, or even if you’re considering refinancing your current one, keeping an eye on interest rates will be crucial. Canara Bank’s adjustments are a clear signal that the lending environment is becoming more favorable for consumers. Keep your options open and consult with your financial advisor to see how you can benefit from these changes.
