Hey, If you are anything like me. All these technical terms about loans and banking must confuse you. A friend of mine recently told me what is MCLR in loan. Take a look at my anwer to know more details.
What is MCLR rate in home loan ?The full form of the term MCLR is
Marginal Cost of Funds based Lending Rate. MCLR can be deemed as the minimum lending rate set by a bank. The bank or the lender is not permitted to lend below the MCLR rate.
Previously there used to be a base rate system in place which dictated the lending rates for commercial banks. In the year 2016, Reserve Bank of India implemented MCLR on banks to determine and fix rates of interest for loans. The MCLR rate undergoes a change each year. The RBI decides the MCLR rate.
Most banks can not lend lower than the MCLR. There are certain expectations to this rule as well. The bank (lender) can only decide if they will give you interest lower than the MCLR lending rate. You can speak with a bank of your choice and enquire about the MCLR. .
There are many factors on which Loan eligibility dependents :
Monthly income
Current age,
Credit score
Fixed monthly financial obligations
Credit history
Retirement age etc.
I hope your doubts about what is MCLR in loan have been cleared. Good luck on your home loan journey !
I have checked my home loan eligibility criteria by using NoBroker home loan services. You can also check it out. [widget_homeLoan_checkEligibility_form] If you want help with scrutiny of technical documents and reports, Check out NoBroker Due Diligence pack Read more :What is home loan process?
how to reduce home loan interest rate in icici bank
How to pay hdfc home loan emi online?
What is the CIBIL score required for home loan?
what is MCLR in home loan
ria
265Views
2 Year
2022-01-03T10:47:40+00:00 2022-01-03T13:44:28+00:00Comment
1 Answers
Share