Canara Bank has reduced its Repo Linked Lending Rate (RLLR) following the Reserve Bank of India’s (RBI) latest monetary policy decision. The bank cut the lending rate by 25 basis points, bringing it down from 8.25% to 8.00%.
This move comes after the RBI lowered the repo rate from 5.50% to 5.25% during its recent Monetary Policy Committee (MPC) meeting. The revised lending rate became effective from December 12, 2025.
As a result, borrowers linked to the repo-based lending rate will benefit from lower EMIs or shorter loan tenures, depending on the terms of their loans. The reduction applies across Canara Bank’s repo-linked loan products.
Moreover, the bank said the decision reflects its commitment to pass on the benefits of RBI rate cuts to customers without delay. By aligning its lending rates with the RBI’s policy stance, Canara Bank aims to offer greater transparency and affordability to borrowers.
Importantly, the cut will support home loan, personal loan, and MSME borrowers by easing repayment pressure. Lower interest rates are also expected to improve credit demand and boost economic activity.
Canara Bank continues to focus on customer-centric banking by ensuring timely transmission of policy rate changes. With inflation moderating and liquidity improving, such steps are likely to enhance borrower confidence in the coming months.
