Important points about Marginal Cost of Funds based Lending Rate (MCLR)

Marginal Cost of Funds based Lending Rate (MCLR) is the new RBI guideline for commercial banks to set lending rates.   It has replaced the earlier base rate system from April 1, 2016. Marginal cost of funds is a key component in calculating MCLR. Changes in key rates like repo rate, will change the marginal cost of funds and so will…

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