Canara Bank & Bank Of Baroda Hike Lending Rates, Will Your Loan EMI Increase Now?

Mumbai - Canara Bank and Bank of Baroda have recently increased their lending rates, which could lead to higher Equated Monthly Instalments (EMIs) for certain borrowers. The changes took effect on August 12, 2026, following the Reserve Bank of India's decision to keep the repo rate steady at 5.25 percent in its August 5 monetary policy meeting.

These revised rates primarily impact individuals who have home, vehicle, personal or other loans tied to Marginal Cost of Funds Based Lending Rates (MCLR). If the lending rate goes up on the next reset date, as stipulated in their loan agreement, borrowers may witness an increase in their monthly EMI. In some instances, banks might maintain the EMI the same but extend the repayment tenure.

Canara Bank has raised its MCLR by five basis points across most tenures, with its overnight rate remaining unchanged at 7.95 percent. Bank of Baroda has only increased its three-month MCLR by ten basis points, from 8.20 percent to 8.30 percent, while its overnight rate is still at 7.85 percent. The one-month, six-month, and one-year rates remain unchanged at 7.95 percent, 8.50 percent, and 8.75 percent, respectively.