Canara Bank lifts MCLR 5 bps across tenors, pushing one-year benchmark to 8.75%

Effective 12 May, Canara Bank raised MCLR by 5 bps across all tenors, taking the retail-linked one-year rate to 8.75% from 8.70%. Floating-rate home, auto and personal loan EMIs will reset higher; fixed-rate loans and deposits are unaffected.

— Filed Thu, 14 May, 2026, 06:42 IST · Source Mint · Money · Updated

Canara Bank raised MCLR by 5 bps across all tenors effective 12 May, lifting the retail-linked one-year rate to 8.75%. Floating-rate auto, home and personal loan EMIs will rise at next reset; deposits and fixed-rate loans unaffected.

Why this matters

Canara Bank's uniform 5 bps MCLR increase signals continued funding-cost pressure and will raise EMIs for existing floating-rate retail borrowers, even as headline policy rates remain steady.

Retail-company activity steady at 106 signals over the last 90 days.