As per the latest revision, the overnight MCLR has been raised to 7.90% from 7.85%, while the one-month MCLR has been increased to 7.95% from 7.90%. The one-year MCLR, which is linked to several retail loans such as home, auto and personal loans, now stands at 8.75% compared to 8.70% earlier.
Borrowers with MCLR-linked floating rate loans may see an increase in their loan interest rates, depending on the reset date and terms of their loan agreements.
According to a message on Canara Bank’s website, the revised MCLRs will apply to new loans or advances sanctioned on or after May 12, 2026. The rates will also be applicable to credit facilities that are renewed, reviewed or reset on or after this date, including cases where borrowers opt to switch to MCLR-linked interest rates.
MCLR is the minimum lending rate below which banks are not permitted to lend, except in specific cases allowed by the Reserve Bank of India. Any increase in MCLR can lead to higher EMIs for borrowers whose loans are linked to this benchmark.
The bank’s Repo Linked Lending Rate (RLLR) stands at 8% with effect from April 12, 2026.
Separately, Canara Bank offers fixed deposit interest rates ranging from 3% to 6.5% for general citizens across tenures of 7 days to 10 years. For senior citizens, FD rates range between 3% and 7%, with the highest rates applicable for a 555-day tenure, effective January 5, 2026.
Bank of Baroda, however, has kept its MCLR unchanged, with all lending rates remaining at previous levels, as per its BSE filing.
Also read: Canara Bank says asset quality is stable, can absorb ₹10,000 crore ECL impact
Canara Bank shares were up 0.63% at ₹130.25 on the NSE, compared to the previous close of ₹130.01.
(Edited by : Prashant)
First Published: May 12, 2026 4:21 PM IST
