Lower EMIs ahead: Canara Bank reduces lending rates; also revises FD interest rates

Canara Bank has revised its lending rates as well as fixed deposit interest rates following the Reserve Bank of India’s (RBI) decision to cut the repo rate by 25 basis points early this month (December 2025). The bank’s move came at a time when many banks such as State Bank of India (SBI) and HDFC Bank have already announced similar cuts in their lending and deposit rates.

The central bank cut the repo rate from 5.50% to 5.25% in its recent Monetary Policy Committee (MPC) meeting in the first week of December 2025.

While Canara Bank’s lending rate revision will benefit borrowers with loans linked to RLLR, a reduction in FD rates means new depositors will get less maturity amounts compared to existing depositors of the same tenure of FD.

Canara Bank has reduced its Repo Linked Benchmark Lending Rate (RLLR) by 0.25% (25 basis points), bringing it down from 8.25% to 8.00%. The revised lending rate came into effect on December 12, 2025. As a result, customers with their loans linked to RLLR may benefit from lower EMIs or a shorter loan tenure, depending on the terms of their loan agreement.

Canara Bank MCLR

However, there was no change in Canara Bank’s MCLR rates. The rates for the bank are as follows-

Canara Bank also revised fixed deposit (FD) interest rates for deposits of less than Rs 3 crore. The revised rates are effective from December 8, 2025. After revision, the bank offers the highest FD interest rate of 6.15% on its 555-day tenure. Earlier, the highest FD interest rate was 6.50%, offered on the 444-day FDfor general citizens.