Bank of Baroda & Canara Bank Cut Loan Rates July 2025 - Lower EMIs for Borrowers
Excellent news for borrowers! Bank of Baroda has slashed its BRLLR by 50 basis points and Canara Bank has reduced its MCLR by 5-10 basis points in July 2025, offering significant relief to existing and new borrowers through lower EMIs and reduced interest costs.
Key Highlights: Rate Updates
- • Bank of Baroda: Updated MCLR structure effective July 12, 2025
- • Canara Bank: MCLR reduced by 5 basis points across most tenures
- • Home Loan Rates: Competitive rates available at both banks
- • EMI Reduction: Existing floating-rate borrowers benefit from rate updates
- • Savings: New borrowers can avail loans at competitive rates
Understanding the Home Loan Rate Updates
Bank of Baroda's updated MCLR structure and Canara Bank's 5 basis points MCLR cut provide significant relief to home loan borrowers. These rate updates directly benefit home loan customers through lower EMIs and reduced interest costs over the loan tenure, making homeownership more affordable.
Home Loan EMI Savings Calculator
Home Loan of ₹50 Lakh for 20 years:
Bank of Baroda (7.45%):
• Monthly EMI: ₹40,247
• Total Interest: ₹46,59,280
Canara Bank (7.80%):
• Monthly EMI: ₹41,316
• Total Interest: ₹49,15,840
Note: EMI calculations are approximate and actual rates may vary based on profile and loan terms.
Bank of Baroda Rate Cut Details
Bank of Baroda, one of India's largest public sector banks, has updated its interest rate structure effective from July 12, 2025. The bank maintains a repo rate of 5.50% and has revised its Marginal Cost of Funds based Lending Rate (MCLR) across all tenures, providing competitive rates for borrowers.
Bank of Baroda Current Rates (w.e.f. 12.07.2025)
Repo Rate: 5.50%
| Sr. No. | MCLR Benchmark | MCLR Rate (%) w.e.f 12.07.2025 |
|---|---|---|
| 1 | Overnight MCLR | 8.10 |
| 2 | 1 Month MCLR | 8.30 |
| 3 | 3 Month MCLR | 8.50 |
| 4 | 6 Month MCLR | 8.75 |
| 5 | 1 Year MCLR | 8.90 |
Bank of Baroda Home Loan Impact
Home Loan Interest Rates: Starting from 7.45% onwards (MCLR + spread)
Key Benefits:
- • Competitive rates based on updated MCLR structure
- • Flexible repayment options
- • Quick processing and approval
- • Lower EMI burden for existing borrowers
- • Attractive rates for new home loan applicants
| Bank of Baroda Loan Type | Previous Rate | New Rate | Savings |
|---|---|---|---|
| Home Loan | 7.95% onwards | 7.45% onwards | 50 bps |
| Personal Loan | 11.25% onwards | 10.75% onwards | 50 bps |
| Car Loan | 9.40% onwards | 8.90% onwards | 50 bps |
Canara Bank Rate Reduction Impact
Canara Bank has made strategic cuts to its Marginal Cost of Funds-based Lending Rate (MCLR) across all tenures, effective from July 12, 2025. The bank has reduced rates by 5 basis points across most tenures, providing immediate relief to borrowers. This positions Canara Bank as a leader in offering competitive home loan rates.
| S No | MCLR Tenor | Existing Rate (%) | Rate w.e.f. 12.07.2025 (%) | Reduction |
|---|---|---|---|---|
| 1 | Overnight MCLR | 8.00 | 7.95 | 5 bps |
| 2 | One Month MCLR | 8.05 | 8.00 | 5 bps |
| 3 | Three Month MCLR | 8.25 | 8.20 | 5 bps |
| 4 | Six Month MCLR | 8.60 | 8.55 | 5 bps |
| 5 | One Year MCLR | 8.80 | 8.75 | 5 bps |
| 6 | Two Year MCLR | 8.95 | 8.90 | 5 bps |
Canara Bank Home Loan Impact
Home Loan Interest Rates: Starting from 7.80% (based on MCLR + spread)
Key Benefits:
- • Most competitive home loan rates in the market
- • 5 basis points reduction across MCLR tenures
- • Immediate benefits for floating-rate borrowers
- • Enhanced affordability for new home buyers
- • Flexible loan tenure options
How to Benefit from the Home Loan Rate Updates
If you're an existing home loan borrower or planning to buy a home, here's how you can maximize the benefits:
For Existing Home Loan Borrowers
- • Check if your home loan is linked to MCLR
- • Contact your bank to confirm the new EMI amount
- • Consider home loan balance transfer if rates are still higher
- • Review your loan statement for updated interest rates
- • Consider prepayment options with the savings
For New Home Buyers
- • Apply now to lock in the competitive rates
- • Compare home loan offers from both banks
- • Negotiate for additional rate concessions
- • Check for processing fee waivers and special offers
- • Consider higher loan amounts with lower EMIs
Bank of Baroda vs Canara Bank Home Loan Rate Comparison
Here's a detailed comparison of the current home loan rates offered by both Bank of Baroda and Canara Bank after their recent rate updates:
| Bank | Home Loan Rate | Status |
|---|---|---|
| Bank of Baroda | 7.45% onwards | MCLR Updated ✓ |
| Canara Bank | 7.80% onwards | 5 bps Cut ✓ |
What's Driving the Rate Cut?
Several factors have contributed to this rate reduction:
- • RBI Policy Stance: Accommodative monetary policy encouraging lending
- • Improved Liquidity: Better fund availability in the banking system
- • Competition: Banks competing for market share in the lending space
- • Economic Recovery: Post-pandemic economic stabilization
Expert Tips for Borrowers
Maximize Your Savings
- • Timing: Apply for loans now before rates potentially increase
- • Negotiation: Use these rates to negotiate with your current bank
- • Prepayment: Consider prepaying loans with higher rates
- • Balance Transfer: Move high-rate loans to these banks
Future Outlook for Home Loans
Banking experts predict that more banks might follow suit with home loan rate cuts in the coming months. This could lead to:
- • Further reduction in home loan rates across the industry
- • Increased competition among banks for home loan customers
- • Better home loan terms and conditions for buyers
- • Growth in home loan demand and real estate activity
- • More affordable homeownership opportunities
Quick Action Steps for Home Loan Borrowers
- 1. Check Current Home Loan Rates: Compare your existing home loan rates with new offers
- 2. Calculate EMI Savings: Use home loan EMI calculators to determine potential savings
- 3. Contact Banks: Reach out to Bank of Baroda and Canara Bank for home loan offers
- 4. Apply Quickly: Submit home loan applications before rates potentially change
- 5. Read Terms: Understand all home loan terms and conditions before signing
Compare Best Home Loan Rates Now!
Don't miss out on the lowest home loan interest rates! Compare home loan offers from Bank of Baroda, Canara Bank, and other top banks to find the best deal for your dream home.
⚠️ Rate Verification Notice: The MCLR rates and interest rate information in this article should be cross-checked with official bank websites for accuracy. Banks update rates monthly, and exact percentages may vary. Visit www.bankofbaroda.in and canarabank.com for the most current rates.
Important Disclaimer: The MCLR rates and percentages mentioned in this article are based on publicly available information and may not reflect the exact current rates. Interest rates are updated monthly by banks and are subject to change. For the most accurate and up-to-date MCLR rates, please visit the official websites of Bank of Baroda (www.bankofbaroda.in) and Canara Bank (canarabank.com) or contact their customer service directly.
Rate Verification: We recommend cross-checking all rate information with official bank sources before making any loan decisions.
Investment/Loan Advisory: This article is for informational purposes only and should not be considered as financial advice. Please consult with qualified financial advisors before making any investment or loan decisions.
Accuracy Note: While we strive to provide accurate information, LoanDekhna does not guarantee the accuracy, completeness, or timeliness of the information presented. Interest rates, terms, and conditions are subject to change without notice.
Liability Disclaimer: LoanDekhna and its authors are not responsible for any financial losses or decisions made based on the information provided in this article. Users are advised to independently verify all information before taking any financial action.
Last Updated: July 14, 2025