An MCLR is a prime factor that affects your home loan interest rates. Given below is a brief outline of MCLR and how it impacts the home loan interest rate. What is MCLR? Marginal Cost of fund based Lending Rate (MCLR) is the benchmark rate which is the lowest percentage a lender is allowed to charge while sanctioning advances. An MCLR is dependant on the … Continue reading Mclr – A Primary Factor In Determining The Interest Rate Of Your Home Loan
Marginal Cost of Funds based Lending Rate or MCLR came to effect from 1st April 2016. It is based on the repo rate, determined by the RBI. Marginal Cost of Funds based Lending Rate was preceded by the base rate. The base rate lacked transparency and borrowers were almost never benefited from it. Hence, to provide transparency in availing credits, MCLR was introduced. It is … Continue reading How Does MCLR Affect Home Loans?
If you are planning to avail a home loan, then you must be aware of the recent change of RBI loan rules and policies. As per the new RBI guidelines, the EMI has gone up. Why did this happen? It is because the latest repo rate has been hiked by the RBI after banks increased their MCLR (Marginal Cost Lending Rate). To understand RBI home … Continue reading What You Should Know About MCLR (Marginal Cost Lending Rate) in 2019?