Between the corona virus havoc, banks are opening in less than their fixed time. Due to which the customers are facing many inconveniences. In this situation, the government bank Canara is going to give big relief. Under which Canara Bank has cut interest rates on loans and advances. Canara Bank has cut its MCLar. Bank has reduced MCLR on loans / advances for all the time periods. These reduced rates for the combined unit will be effective from Tuesday. This public bank has cut interest rate by 0.35 percent for a period of one year. At the same time, the bank has reduced the interest rate by 0.30 percent for a period of six months.
When talking about a loan or advance for a period of three months, the bank has cut its interest rate by 0.20 percent. Apart from this, Canara Bank has cut interest rate by 0.15 percent for a loan or advance with a period of one month. The bank has said in a statement that it has also cut the repo linked lending rate (RLLR). The bank has cut RLLR by 0.75 percent. It was earlier 8.05 percent, which will now be 7.30 percent after the deduction. The new interest rate will be effective from Tuesday.
The merger of Syndicate Bank into Canara Bank became effective from April 1, 2020. Finance Minister Nirmala Sitharaman had announced about these mergers in her budget speech. In view of the damage done to the economy by the Corona virus, the RBI had decided at the end of last month to cut its major interest rates significantly. The bank had drastically reduced the repo rate by 0.75 percent. With this, the repo rate has come down to 4.4 percent. With this, the RBI had also decided to reduce the reverse repo rate by 0.90 per cent to four per cent.