MCLR refers to the marginal cost of funding based on lending rates. Simply put, by the MCLR method, banks decide its minimum rate of interest for Home Loans. Hence, they serve as an internal benchmark or as reference rates for banks to decide interest rates for home loans.
As there are tons of home loan tax benefits available to a borrower, it becomes essential to know more about the functions of MCLR.
What is MCLR?
MCLR or Marginal Cost of Funds based Lending Rates is the minimum interest rates beyond which a bank cannot provide a loan. In other