Canara Bank reduced the loan rate by 0.15 percent, the new rates will be effective from February 12

Public sector Canara Bank has cut its lending rate by 0.15 percent despite the Reserve Bank of India (RBI) increasing the repo rate by 0.25 percent. The new rates on bank loans will be applicable from Sunday i.e. February 12. In the information sent to the stock market, Canara Bank said that it has reduced the loan rate (RLLR) linked to the repo rate by 0.25 percent. After this deduction, the new RLLR will come down from 9.40 per cent to 9.25 per cent. The new rates of the bank will be effective from February 12.

In the information sent to the stock market, Canara Bank said that it has reduced the loan rate (RLLR) linked to the repo rate by 0.25 percent. After this deduction, the new RLLR will come down from 9.40 per cent to 9.25 per cent. The new rates of the bank will be effective from February 12.However, before this, Punjab National Bank (PNB) and Bank of Baroda (BoB) have increased the interest rate on loans by up to 0.25 percent.

RLLR is an external benchmark linked to the repo rate of the Reserve Bank, which means it will change as and when the repo rate changes. Actually there is more transparency in it. Due to this change, the interest rates of home loan, car loan and personal loan decrease and increase, but Canara Bank has cut the loan rate instead of increasing it for the convenience of its customers. The RBI had increased the repo rate by 0.25 per cent this week to control inflation. After this increase, the repo rate has increased from 6.25 percent to 6.50 percent.