Canara Bank Revises Short-Term MCLR Rates, Overnight And Six-Month Lending Rates Raised By 5 Basis Points From June 12

Mumbai: State-owned Canara Bank has announced a revision in its Marginal Cost of Funds Based Lending Rate (MCLR), which will come into effect from June 12, 2026. The bank informed stock exchanges about the change through a regulatory filing dated June 10.

MCLR is the benchmark rate used by banks to determine interest rates on various floating-rate loans, including certain home, vehicle and business loans.

Short-Term Lending Rates Increased

According to the filing, Canara Bank has increased several short-term MCLR tenors by 5 basis points (0.05 percentage points). The overnight MCLR has been revised to 7.95 percent from 7.90 percent.

The one-month MCLR has been increased to 8.00 percent from 7.95 percent, while the three-month MCLR has been raised to 8.25 percent from 8.20 percent.

Similarly, the six-month MCLR has been revised upward to 8.60 percent from 8.55 percent.

Key Loan Benchmark Remains Unchanged

The bank has kept its one-year MCLR unchanged at 8.75 percent. This benchmark is important because many retail loans, including home loans, are linked to the one-year MCLR.

Canara Bank has also maintained the two-year MCLR at 9.00 percent and the three-year MCLR at 9.05 percent without any change.

Impact on Borrowers

The revision indicates a modest increase in borrowing costs for loans linked to shorter-duration MCLR benchmarks. Existing borrowers whose loans are linked to these tenors may see a slight change in interest rates depending on their reset dates.

The revised rates will become effective from June 12, 2026, and will apply according to the bank's lending policies and loan agreements.

Disclaimer: This report is based on Canara Bank's stock exchange filing dated June 10, 2026, and disclosed information only.