MCLR stands for Marginal Cost of Funds Based Lending Rate. So what is MCLR in Banking? The answer is, that it is the lowest interest rate that a bank or lender can give. It provides transparency in financial institutions and also determines their interest rates. The best part of MCLR is that it ensures that the loan remains fair for the lender as well as the customer.
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What is MCLR rate in banking?MCLR is the minimum interest rate below which financial institutions cannot lend money unless there are some exceptions. Previously there were some cases of undue advantages going on but with MCLR, these have stopped.
The MCLR rates:Since July 2019 there have been some changes and new rates that are as follows:
Overnight and 1-month MCLR- 6.75%
3-month MCLR is 6.90%
6-month MCLR is 7.05%
1 Year MCLR is 7.20%
1 Month MCLR Rate is 6.65%
3 Month MCLR Rate is 6.65%
6 Month MCLR Rate is 6.95%
1 Year MCLR Rate is 7.00%
6 Months 7.05%
3 Months 6.95%
1 Month 6.90%
Overnight 6.85%
MCLR is calculated based on the amount of time a person takes to repay the loan. It is the respective banks that decide and then publish their MCLR after much inspection.
Hpe now you know
what is MCLR in banking clearly.
Read More:
What is MCLR Rate?
What is MCLR In Home Loan?
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What is MCLR in Banking?
Abhay
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2022-04-07T19:10:09+00:00 2022-04-07T19:10:10+00:00Comment
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