May 15, 2023: Public lender Canara Bank has cut its repo rate-linked home loan interest rate to 8.85%, by effectuating a 40-basis-point reduction. The new rate comes into effect from May 12, 2023. The bank’s lowest rate is available to women borrowers only. At 8.9%, men will have to pay an additional five-basis point more on Canara Bank home loan. Based on their risk profile, borrowers will pay anywhere between 8.85% to 11.25% interest on Canara bank home loans.
Canara Bank home loan rate in May 2023
| Risk profile | Interest rate for women | Interest rate for men |
| Prime | 8.85% | 8.90% |
| 1 | 9.0% | 9.5% |
| 2 | 9.30% | 9.35% |
| 3 | 9.70% | 9.75% |
| 4 | 11.20% | 11.25% |
The revised rate will be applicable only to new accounts opened on or after May 12, 2023, and accounts completing three years under the RLLR regime on that date. The bank would continue to charge the old rates on existing loan accounts that have not completed three years under the RLLR regime.
Borrowers investing in their third commercial property will have to shell out 25-basis points over and above the applicable rate. This premium will be 50-basis points in the case of the fourth commercial property.
A 100-basis point is equal to one percentage point.
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