Last Updated:June 12, 2025, 11:56 IST
Reserve Bank of India’s (RBI) announced cutting the repo rate by 50 basis points, from 6.00% to 5.50%, in the latest Monetary Policy Committee (MPC) meeting.
‘This means lower EMIs for existing and new borrowers and enhanced affordability for customers,’ says Canara Bank.
Canara Bank Lending Rate: Canara Bank has announced a reduction in Repo Linked Lending Rate (RLLR) from 8.75 % to 8.25 % (applicable on its assets portfolio linked to External Benchmark rate), following the Reserve Bank of India’s (RBI) announcement cutting the repo rate by 50 basis points, from 6.00% to 5.50%, in the latest Monetary Policy Committee (MPC) meeting. This marks the third consecutive rate cut by the RBI in 2025, signalling a supportive stance towards economic growth amidst easing inflation.
The revised lending rates will be effective from 12th June, 2025.
The RLLR has been reduced by 0.50% (50 basis points), directly reflecting the decrease in the RBI’s repo rate. This move will lower borrowing costs for customers with loans linked to RLLR. Depending on their loan terms, customers may benefit from reduced EMIs (Equated Monthly Instalments) or a shorter loan tenure.
Canara Bank has offered the due benefits to borrowers by reducing RLLR.
Canara Bank FD Rates
Canara Bank is offering competitive interest rates on domestic term deposits below Rs 3 crore. The highest rate available is 7.20% p.a. for senior citizens on non-callable deposits with a 444-day maturity, yielding an annualised return of 7.40%. For the general public, the highest rate is 6.70% (7.20% for senior citizens) under the same category and tenure.
On the other end, the lowest rate stands at 3.50% p.a. for callable deposits with a maturity of 7 to 45 days, while senior citizens receive 4.00% in this slab.
IOB Also Cuts RLLR By 50 Bps From June 12
Indian Overseas Bank (IOB) has announced a 50 basis points cut in its Repo Linked Lending Rate (RLLR), bringing it down from 8.85% to 8.35%. The decision was approved by the bank’s Asset Liability Management Committee (ALCO) during its meeting held on June 11, 2025. The revised rate will come into effect from June 12, 2025. The move is expected to make loans cheaper for borrowers linked to the RLLR benchmark.
Earlier, several lenders, including Bank of India, UCO Bank, Punjab National Bank, Bank of Baroda, HDFC Bank and many more have announced to reduce MCLR or RLLR rates following the RBI’s decision on repo rate. It makes new loans cheaper for borrowers and existing EMIs on loans lower.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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