Canara Bank hikes lending rate by 50 basis points

Canara Bank has hiked its repo rate linked lending rate by 50 basis points (bps) to 8.30 per cent. the new lending rates will come into effect from today, August 7.

This comes just a day after the Reserve Bank of India (RBI) hiked policy repo rate by 50 bps to tame inflation. Friday's hike takes the repo rate above pre-pandemic levels of 5.15 per cent. The RBI has so far hiked the key repo rate by 140 basis points in three instances.

Repo rate is the rate at which the central bank of a country lends money to commercial banks.

As per data updated on Canara Bank website, the interest rate on home loans will be increased to 8.10 per cent for general customers.

For women customers, it will be hiked to 8.05 per cent. Canara Bank offers 0.05 per cent concession to women borrowers.

ICICI Bank and PNB too raised their lending rates after the RBI increased the benchmark interest rate.