scorecardresearchMCLR: What is it and why is preferred over the base interest rate for loan EMIs?

MCLR: What is it and why is preferred over the base interest rate for loan EMIs?

Updated: 11 Jul 2022, 11:43 AM IST
TL;DR.
The MCLR, which was introduced in 2016, is the lowest rate at which banks may lend to their clients. Read on to learn more about its advantages and calculation.
The MCLR allows RBI interest rate modifications to be notified to borrowers relatively fast, with monthly updates to the MCLR.

The MCLR allows RBI interest rate modifications to be notified to borrowers relatively fast, with monthly updates to the MCLR.