Loan relief ahead: Canara Bank, Union Bank ease lending rates after repo cut

Following the Reserve Bank of India's recent decision to cut the repo rate, several public sector banks, including Canara Bank and Union Bank of India, have announced a reduction in their lending rates. These banks have lowered their Marginal Cost of Funds-based Lending Rate (MCLR), which is the benchmark rate to which most of their loans are linked. This move will make home loans, auto loans, and personal loans cheaper for both new and existing borrowers whose loans are tied to the MCLR. The reduction in lending rates is a direct transmission of the RBI's monetary policy easing and is intended to stimulate credit growth and boost consumption in the economy. This provides a tangible relief for borrowers, as their Equated Monthly Installments (EMIs) are expected to decrease, thereby improving their disposable income.