New Delhi, May 10 (H.S.):Public sector Canara Bank has cut the Marginal Cost of Lending Rate (MCLR) by 0.10 percent for most tenors. With this reduction, loans will become cheaper. The new rates will be effective from May 12.

Canara Bank informed the stock market that the MCLR has been reduced by 0.10 percent. After this reduction, the current rate of the one-year MCLR will drop from 9.10 percent to 9 percent. The bank stated that its new marginal MCLR will be implemented from May 12.

In a statement released by the bank, it was mentioned that the interest rates for one month, three months, and six months will range between 8.25-8.80 percent. Additionally, the MCLR for one day will decrease from 8.30 percent to 8.20 percent. The benchmark MCLR is used to determine the rates for most consumer loans such as auto and personal loans.

The Reserve Bank of India (RBI) had reduced its key interest rate, the repo rate, by 0.25 percent last month, bringing it down to six percent. This is the second consecutive reduction of the repo rate by the Reserve Bank this year.

Hindusthan Samachar / Jun Sarkar