Mumbai: Canara Bank has reduced its one month and overnight MCLR rates by five basis points to 7.90% and 7.85% respectively. The revised rates, which means cheaper borrowing costs, will take effect from February 12. MCLR (marginal cost of funds based lending rate) is the minimum interest rate a bank must charge for loans, introduced by the RBI to ensure transparent, faster interest rate transmission. The reduction in MCLR rates comes amid a demand for credit, both by retail and who-lesale participants.