Glossary
MCLR (Marginal Cost of Funds Based Lending Rate)
The older internal benchmark used by banks for floating-rate loans before external benchmarks.
What it means
MCLR is computed from a bank's own cost of funds and reviewed monthly, with loans reset annually or half-yearly. Many home loans sanctioned between 2016 and 2019 are still on MCLR.
MCLR loans transmit rate cuts more slowly than repo-linked loans. If you are on MCLR and paying more than current EBLR rates, ask your bank to convert or consider a balance transfer.
More terms
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