The marginal cost of funds-based lending rate, or MCLR, serves as a benchmark rate for banks to determine the interest rates on various floating-rate loans, such as home, personal, and automobile loans. A decrease in MCLR indicates a possible decline in EMIs for loans or a shorter loan tenure, which benefits borrowers in the long term. MCLR does not apply to new loans, as new floating-rate loans are linked to the External Benchmark Lending Rate (EBLR). Banks provide borrowers with the options to transition from MCLR to EBLR.
SBI lending rates: Has State Bank of India lowered its MCLR rates for home loans and personal loans?
