Mclr:

MCLR, or Marginal Cost of Funds based Lending Rate, is the minimum interest rate below which a bank in India is not permitted to lend, except in specific cases allowed by the Reserve Bank of India (RBI). MCLR stands for Marginal Cost of Funds-Based Lending Rate. It is the lowest interest rate a bank can offer you for a loan. The Reserve Bank of India (RBI) introduced the MCLR system in April 2016 to make loan pricing more transparent and fairer for borrowers. HDFC Bank has reduced its Marginal Cost of Funds-based Lending Rates (MCLR) by up to 10 basis points (bps) across select loan tenures, a move that could bring relief to borrowers whose loans are linked to this internal benchmark. MCLR Rate Meaning MCLR (Marginal Cost of funds based Lending Rate) is the minimum rate of interest declared by any bank below which the bank cannot offer any kind of loan. It replaces the Base Rate which used to prevail before April 1, 2016. The Base Rate was introduced by RBI in July 1, 2010 to regulate the lending systems by the banks. What is Base Rate? Base rate is the minimum rate set by the Reserve Bank of India (RBI) and below this rate, the banks cannot lend to their customers. RBI ...