Canara Bank MCLR
Canara Bank is one of the top banks in India that offers innovative and flexible financial products and services. Just like the other leading banks in this country, Canara Bank too has revised the Marginal Cost of Funds Based Lending Rate (MCLR) making housing loans more affordable for their customers.
Current Canara Bank MCLR Rates
Tenor | Canara Bank MCLR Rate |
Overnight | 7.95% |
1 month | 8.00% |
3 months | 8.20% |
6 months | 8.55% |
1 year | 8.75% |
2 years | 8.90% |
3 years | 8.95% |
Note: These rates are effective from 12 July 2025 until next MCLR review
How to Switch to Canara Bank MCLR Rate from Canara Bank Base Rate:
There are 2 steps involved in process if switching from Canara Bank Home Loan base rate to Canara Bank home loan MCLR rate:
- Send a written request to the bank so that they initiate the process of linking your housing loan to MCLR.
- After marginal cost of funds based lending rate is linked to your home loan, request your lender to bring the quantum of spread down. At this point, a processing fee is levied to carry out this step, post which the housing loan rate will be refreshed as per the MCLR.
What Should the Existing Borrowers Do?
The benefit offered by marginal cost of funds-based lending rate will not be reflected right away in the present regime. Most of the housing loan agreements associated with MCLR are renewed after a period of 12 months.
The existing borrowers of Canara Bank home loans will have to wait till the rates have been reset. The new rate on the reset date will be determined by the MCLR rate cuts over the past 6 to 12 months.
Canara Bank Home Loan Rate and MCLR:
- All the floating rate home loans that are sanctioned by the bank is benchmarked to the marginal cost of funds based lending rate for a specific tenure, like 6 months, 3 months or 1 month.
- Overnight loans, cash credit, etc. are the shorter duration loans and they are linked to the shorter period MCLR. The longer period loans like vehicle loan, home loan, etc. are linked to the longer duration marginal cost of funds based lending rates.
- The applicable interest rate on floating rate housing loan has 2 parts - margin/spread above benchmark and applicable benchmark rate.
Canara Bank MCLR Rates History:
Revision Date | 1 Year MCLR | 6 Months MCLR | 3 Months MCLR | 1 Month MCLR | Overnight MCLR |
12 May 2025 | 9.00% | 8.80% | 8.45 | 8.25% | 8.20% |
12 May 2024 | 8.90% | 8.70% | 8.35% | 8.25% | 8.15% |
12 June 2023 | 7.90% | 8.00% | 8.15% | 8.45% | 8.65% |
7 September 2022 | 7.75% | 7.65% | 7.25% | 6.90% | 6.90% |
7 December 2021 | 7.25% | 7.20% | 6.85% | 6.85% | 6.85% |
7 October 2021 | 7.25% | 7.20% | 6.85% | 6.55% | 6.55% |
7 February 2021 | 7.35% | 7.30% | 6.95% | 6.70% | 6.70% |
7 November 2020 | 7.35% | 7.30% | 6.95% | 6.80% | 6.80% |
7 October 2020 | 7.40% | 7.35% | 7.10% | 6.95% | 6.95% |
FAQs on Canara Bank MCLR Rates
- Who can apply for Canara Bank housing loan?
Any Indian citizen (salaried or non-salaried) between the age of 18 to 55 is eligible to apply for Canara Bank housing loan.
- What is the Canara Bank housing loan limit for renovations and repair of houses?
The Canara Bank housing loan limit for renovations and repair of houses is Rs.15 lakh.
- How is the margin computed for Canara Bank housing loan?
Stamp duty, registration fees, and other documentation costs may be included in the project cost for housing loans with project costs up to Rs.10.00 lakh for the purposes of determining the margin and LTV ratio.
- What is the repayment tenure for Canara Bank housing loan?
The repayment tenure for Canara Bank housing loan a maximum of 30 years from the date of disbursement, or until the borrower turns 70 years old, whichever comes first.
- Can an online application be submitted for Canara Bank housing loan?
Yes, you can apply for Canara Bank housing loan online. You must visit www.canarabank.com and select Retail Loans in order to submit an online loan application.
- Can the income of a spouse be taken into consideration for repayment capacity for Canara Bank housing loan?
Yes, the spouse's income is taken into account when determining the ability to repay the loan and compliance with the NTH condition if family income comprises both the applicant and the spouse, provided that the spouse also signs the loan documents.
- Is Canara Bank housing loan sanctioned for purchase of land?
No, Canara Bank housing loan is not sanctioned for the purchase of land.
News on Canara Bank MCLR
Canara Bank Reduces Lending Rates by 5 bps
The leading public sector bank, Canara Bank, has lowered its lending rates by 5 bps (basis points). The revised MCLR (Marginal Cost of Funds-Based Lending Rates) presently is 7.95%, down from 8%. The new rates can lead to lower EMIs for home, auto, and personal loans, making it beneficial to the borrowers. The new rates will take effect from 12 July 2025.
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