Canara Bank MCLR Rates Revised for Loan Tenures

Canara Bank has announced a revision in its Marginal Cost of Funds Based Lending Rate (MCLR. And they are increasing lending rates for certain loan tenures. This bank raised the two year and three year MCLR by 10 basis points. This change of rates which will come into effect from March 12, 2026. With this change  the two-year MCLR rises to 8.95% from 8.85% while the three year MCLR increases to 9% from 8.90%.

Latest Changes in Canara Bank MCLR Rates

Canara Bank MCLR rates have been revised for medium term loan tenures which is reflecting the bank’s latest interest rate adjustment.

According to the regulatory filing made by the bank the MCLR-linked lending rates for two and three year tenures have increased by 10 basis points.

The new rates will come into effect from Thursday March 12, 2026 and will influence loans that are directly linked to the MCLR benchmark.

Updated Canara Bank MCLR Rates Structure

The latest revision has changed the lending rates for specific tenures of MCLR linked loans in India.

These rates act as the base interest rates on which banks determine loan interest rates for customers.

The revised rates include,

• Two year MCLR: Increased to 8.95% from 8.85%
• Three year MCLR: Increased to 9.00% from 8.90%

What Is MCLR and How It Affects Loan Interest Rates

The Marginal Cost of Funds Based Lending Rate (MCLR) is a benchmark rate used by banks in India to determine the minimum interest rate for various loans.

this MCLR Was introduced by the Reserve Bank of India (RBI) in 2016.

The MCLR system replaced the earlier base rate framework.

Under the MCLR lending system banks calculate lending rates based on factors such as funding costs, operating expenses and cash reserve requirements.

Question

Q. By how many basis points did Canara Bank increase its MCLR rates for two and three-year tenures?

A. 5 basis points
B. 10 basis points
C. 15 basis points
D. 20 basis points