What is the story about?
Canara Bank has reduced its Repo Linked Lending Rate (RLLR) by 25 basis points, in line with the Reserve Bank of India’s (RBI) latest monetary policy decision to cut the repo rate from 5.50% to 5.25%.
The public sector lender has lowered its RLLR from 8.25% to 8.00%, with the revised rate coming into effect from December 12. The reduction directly mirrors the RBI’s repo rate cut announced by the Monetary Policy Committee (MPC).
With the lower RLLR, borrowers linked to repo-based lending rates are likely to see a reduction in equated monthly instalments (EMIs) or loan tenure, depending on the terms of their loan agreements.
Repo-linked loans typically allow faster transmission of policy rate changes to customers.
Canara Bank’s move follows a broader trend among lenders adjusting interest rates after the RBI’s policy easing. Recently, HDFC Bank also reduced interest rates on select fixed deposit tenures, while the State Bank of India revised both lending and deposit rates in response to the repo rate cut.
HDFC Bank lowered interest rates on fixed deposits (FDs) for amounts under ₹3 crore.
For tenures of 18 months to less than 21 months, HDFC Bank has cut FD rates by 15 basis points. The rate for general customers has been reduced from 6.6% to 6.45% per annum, while senior citizens now earn 6.95% per annum, down from 7.1%.
Other tenures ranging from seven days to ten years have also been revised, with rates varying between 2.75% and 6.40% depending on the deposit period and customer category.
The public sector lender has lowered its RLLR from 8.25% to 8.00%, with the revised rate coming into effect from December 12. The reduction directly mirrors the RBI’s repo rate cut announced by the Monetary Policy Committee (MPC).
With the lower RLLR, borrowers linked to repo-based lending rates are likely to see a reduction in equated monthly instalments (EMIs) or loan tenure, depending on the terms of their loan agreements.
Repo-linked loans typically allow faster transmission of policy rate changes to customers.
Canara Bank’s move follows a broader trend among lenders adjusting interest rates after the RBI’s policy easing. Recently, HDFC Bank also reduced interest rates on select fixed deposit tenures, while the State Bank of India revised both lending and deposit rates in response to the repo rate cut.
HDFC Bank lowered interest rates on fixed deposits (FDs) for amounts under ₹3 crore.
For tenures of 18 months to less than 21 months, HDFC Bank has cut FD rates by 15 basis points. The rate for general customers has been reduced from 6.6% to 6.45% per annum, while senior citizens now earn 6.95% per annum, down from 7.1%.
Other tenures ranging from seven days to ten years have also been revised, with rates varying between 2.75% and 6.40% depending on the deposit period and customer category.
