After the Reserve Bank of India (RBI) cut the repo rate by 25 basis points to 5.25% in its December policy meeting, several major banks have started passing on the benefit.
Following SBI and HDFC Bank, Canara Bank has now revised both its lending rates and fixed deposit (FD) interest rates.
While this move brings relief to loan borrowers, it also means lower returns for customers planning to invest in fixed deposits.
Canara Bank Cuts Lending Rates
Canara Bank has reduced its Repo Linked Benchmark Lending Rate (RLLR) by 25 basis points.
The rate has come down from 8.25% to 8.00%, effective December 12, 2025.
Borrowers whose home loans, personal loans, or other retail loans are linked to RLLR may now see lower EMIs or a shorter loan tenure, depending on their loan terms.
Here are Canara Bank’s latest MCLR rates:
Overnight MCLR: 7.90%
One-month MCLR: 7.95%
Three-month MCLR: 8.15%
Six-month MCLR: 8.50%
One-year MCLR: 8.70%
Two-year MCLR: 8.85%
Three-year MCLR: 8.90%
Fixed Deposit Rates Revised Downward
Along with lending rates, Canara Bank has also reduced FD interest rates for deposits below Rs 3 crore, effective December 8, 2025.
After the revision, the highest FD rate is now 6.15% for a 555-day tenure.
Earlier, the bank was offering 6.50% on a 444-day FD for general customers.
Latest Canara Bank FD Interest Rates
Here are the updated FD rates for general customers and senior citizens:
7 to 45 days: 3%
46 to 90 days: 4%
91 to 179 days: 4.25%
180 to 269 days: 5.25% (Senior citizens: 5.75%)
270 days to less than 1 year: 5.5% (Senior citizens: 6%)
1 year to 1 year 3 months: 5.9% (Senior citizens: 6.4%)
444 days: 6% (Senior citizens: 6.5%)
555 days: 6.15% (Senior citizens: 6.65%)
Above 1 year 3 months to less than 2 years: 5.9% (Senior citizens: 6.4%)
What This Means for Customers
For borrowers, the rate cut is good news as it reduces loan costs.
However, for FD investors, especially new depositors, the returns will be slightly lower going forward.
Customers planning loans or fixed deposits should review these changes carefully and choose options that best match their financial goals.
