Canara Bank, IDBI Bank loans get costlier

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Canara Bank has raised rate of interest on various types of consumer loans like home loans and auto loans. The public sector bank has hiked its one year MCLR to 8.65%. The interest rates on various types of loans are tied up with 1 year MCLR of banks. With Canara Bank raising its 1 year MCLR, various types of consumer loans will become costlier with the public sector bank. Apart from Canara Bank, loans of IDBI Bank has also become costlier from today. RBI in its latest meeting has kept repo rate unchanged and now experts suggest that rate may remain at that level for some time. So it needs to be seen how banks will react after this.