According to the Canara Bank website, “Rates of Interest of all Retail Lending Schemes are linked to REPO LINKED LENDING RATE RLLR OF THE BANK – 9.25% w.e.f 12.02.2023.”
On February 9, 2023, Canara Bank had revised its RLLR to 9.4%, a day after the Reserve Bank of India hiked the repo rate. Click here to read the full story.
The bank offers a concession of 0.25% on a housing loan of 9.25%. The above concession will be applicable to only Low Risk Borrowers where new housing loans (all variants) sanctioned and disbursed during the period i.e., from 01.01.2023 to 31.03.2023.
Interest rates on housing loans vary depending on credit risk premium over RLLR.
Credit risk premium over RLLR
- If the credit risk is NIL of an women borrower, the rate applicable will be 9.00%. For other individuals 9.05%.
- If the credit risk is 0.05 of an women borrower, the rate applicable will be 9.30%. For other individuals 9.35%.
- If the credit risk is 0.45 of an women borrower, the rate applicable will be 9.70%. For other individuals 9.75%
- If the credit risk is 1.95 of an women borrower, the rate applicable will be 11.20%. For other individuals 11.25%.
Earlier, according to the Canara Bank website, “Rates of Interest of all Retail Lending Schemes were 9.40% effective from February 9, 2023.
RBI repo rate hike
Following the footsteps of the RBI, many banks have hiked their repo linked lending rates and marginal cost of lending rates.