Canara Bank and BoB raise MCLR, EMIs may rise

Business Aug 12, 2026

Starting August 12, 2026, Canara Bank increased MCLR by 5 bps on select tenures and Bank of Baroda increased MCLR by 10 bps on a select tenure.

If you have an MCLR-linked loan, your monthly EMIs might go up a bit.

This move comes even though the RBI just kept its main interest rate steady at 5.25% last week.

Canara Bank 7.95%-9.10%, BoB 3-month 8.30%

Canara Bank's MCLR now ranges from 7.95% for overnight to 9.10% for three years, with small increases across select tenures.

At Bank of Baroda, only the three-month MCLR is rising, to 8.30%, while other rates stay put.

If you're repaying an MCLR-linked loan from either bank, it's worth double-checking your new EMI so there are no surprises next month.