Canara Bank, one of India’s top public sector banks, offers a wide array of retail loans such as housing, vehicle, education, and personal loans. These loans are primarily linked to the Repo Linked Lending Rate (RLLR). As per RBI guidelines, this system ensures faster transmission of monetary policy and more transparency for borrowers. In this post, you’ll find detailed information about Canara Bank’s RLLR-based loan interest rates, borrower benefits, and key comparisons.
What is RLLR in Canara Bank?
RLLR stands for Repo Linked Lending Rate, which is a floating interest rate directly tied to the RBI’s repo rate. Therefore, whenever the RBI modifies the repo rate, Canara Bank’s RLLR automatically adjusts, reflecting that change.
Current RLLR of Canara Bank (As of June 12, 2025):
- RLLR = 8.25%
- Effective from June 12, 2025
Applicability of RLLR
Borrowers should be aware of the loan sanction date to determine the applicable RLLR. Here’s how:
| Loan Account Opening Date | RLLR Applicable |
|---|---|
| On or after June 12, 2025 | 8.25% |
| Before Feb 12, 2023 & loan tenure < 3 years | 8.40% |
| Before Feb 12, 2023 & loan tenure ≥ 3 years | 8.25% |
As you can see, the RLLR adjustment depends on how old the loan is and its duration.
Canara Bank Home Loan Interest Rates 2025
Home loans are the most sought-after product in Canara Bank’s portfolio. Consequently, the bank offers competitive interest rates based on the borrower’s credit rating.
For Loan Amounts up to ₹50 Lakh (Tenure > 3 Years):
| CRG (Credit Grade) | Women Borrowers | Other Borrowers |
|---|---|---|
| CRG – PRIME | 7.50% | 7.55% |
| CRG – 1 | 7.80% | 7.85% |
| CRG – 2 | 8.70% | 8.75% |
| CRG – 3 | 9.20% | 9.25% |
| CRG – 4 | 10.20% | 10.25% |
Clearly, higher CRG ratings mean lower interest rates.
Canara Bank Vehicle Loan Interest Rates
Canara Bank also provides auto loans at competitive rates. Notably, women and top-rated borrowers receive better terms.
New Car Loan (≤ ₹15 Lakh, Tenure > 3 Years):
| CRG | Women | Others |
|---|---|---|
| PRIME | 8.15% | 8.20% |
| 1 | 8.25% | 8.30% |
| 2 | 8.50% | 8.55% |
| 3 | 9.25% | 9.30% |
| 4 | 10.20% | 10.25% |
Green Vehicle Loan (EV)
In line with India’s push toward sustainable transport, Canara Bank offers Green Vehicle Loans for electric vehicles (EVs). These loans come with attractive concessional rates.
| CRG | Effective Rate |
|---|---|
| PRIME | 8.05% |
| 1 | 8.15% |
| 2 | 8.45% |
| 3 | 9.20% |
| 4 | 10.15% |
Therefore, EV buyers enjoy both environmental and financial benefits.
Canara Mortgage Loan
Canara Mortgage Loans allow borrowers to avail loans against property. Depending on the security coverage, interest rates vary.
| Security Coverage | Interest Rate |
|---|---|
| ≥ 200% (CRG 1) | 9.50% |
| 100% – <200% | 10.00% |
| <100% | 10.50% |
This means better security fetches lower interest rates.
Other Retail Loans
Canara Bank also caters to varied credit needs through personal and education loans.
| Loan Type | Borrower | Interest Rate |
|---|---|---|
| Home Improvement | CRG 1 | 10.75% |
| Home Loan Plus | CRG 1 | 8.80% |
| Canara Budget (Personal Loan) | CRG 1 to 4 | 9.95% – 14.95% |
| Teachers Loan | All | 10.90% |
| Vidhya Turant (Education) | CRG 1 | 10.15% |
Clearly, even non-mortgage loans are competitively priced when credit quality is good.
Women Borrower Benefits
One of the most notable features of Canara Bank’s retail loans is its women-specific concession. For most retail loans, women borrowers get a discount of up to 0.75%, depending on the product and credit score.
Thus, women can save significantly on interest costs over the loan tenure.
🧾 How Are Rates Calculated?
The formula to determine the final interest rate is:
Final Interest Rate = RLLR + CRP (Credit Risk Premium) – Applicable Concession
Example:
For a woman borrower with CRG 1 applying for a car loan:
- RLLR = 8.25%
- CRP = 0.05%
- Women Concession = 0.10%
- Final Rate = 8.25 + 0.05 – 0.10 = 8.20%
As illustrated, small percentage differences can impact total loan cost.
Key Takeaways
- Canara Bank’s RLLR-based loans offer transparency and are responsive to RBI rate changes.
- Women borrowers, EV users, and high CRG-rated customers enjoy the lowest interest rates.
- RLLR may fluctuate; therefore, borrowers must plan for possible EMI variations.
- Borrowers with loans older than 3 years are now eligible for the new RLLR rate (8.25%).
Final Thoughts
To conclude, Canara Bank’s shift to RLLR-based lending is a welcome move toward transparent and competitive retail banking. With specialized offerings for women, green vehicle buyers, and top-rated borrowers, the bank ensures inclusive and responsive financial solutions.
Before applying, always compare CRG ratings, check eligibility for concessions, and consult with the bank for your personalized loan rate.
