All About Marginal Cost Funds Based Lending Rates-MCLR
Recently the bank have introduced and are encouraging a number of home loan borrowers to opt for MCLR in place of base rating system where the rates are already fixed. Marginal Cost Based lending Rate (MCLR) is the minimum rate of interest below which the bank cannot lend the loan, with an exceptional of certain cases as approved by RBI. MCLR is the internal benchmark or the reference rate based of which bank lends the loan.
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