Big good news on EMI! This government bank has cut interest rates by 0.50%, and these customers will get direct benefit.

After RBI reduced the repo rate, now Canara Bank has also given relief to its customers by announcing a cut in Repo Linked Lending Rate (RLLR). Now the new RLLR of the bank has been reduced from 8.75% to 8.25%.

Canara Bank Interest Rates: Canara Bank, one of the leading government banks of the country, has given relief to its customers by announcing a cut in Repo Linked Lending Rate (RLLR). Now the new RLLR of the bank has been reduced from 8.75% to 8.25%. This decision has been taken after the recent 50 basis point repo rate cut (6.00% to 5.50%) by the Reserve Bank of India (RBI).

Canara Bank said in a statement that the new rates have come into effect from June 12, 2025, and will apply to all loans linked to the bank's External Benchmark Rate. This is the result of the RBI's Monetary Policy Committee (MPC) cutting the repo rate for the third time in the year 2025, which indicates that the policy stance is helpful in accelerating the country's economy.

What is RLLR?

RLLR i.e. Repo Linked Lending Rate is an interest rate which is directly linked to the RBI's repo rate. When RBI changes the repo rate, banks also change their RLLR based on the same.

The repo rate is the rate at which RBI gives short-term loans to other banks. Its purpose is to control the cash situation in the market and control inflation.

How will customers benefit?

Home loans, personal loans, auto loans etc. which are linked to RLLR will now have lower interest rates.
This can reduce the EMI of customers or they can repay the loan in less time.

This is also a golden opportunity for new loan takers as they can get loans at lower interest rates.

What did Canara Bank say?

In a statement issued by Canara Bank, it has been said that the bank is committed to giving the best banking experience to its customers and in line with the monetary policies of RBI, customers are being given relief in loan rates. This will directly benefit millions of customers.