MCLR Base Rate
Last Updated 20th Jul 2017
Current MCLR Base Rate of All Banks in India
- MCLR (Marginal Cost of Fund based Lending Rate) is the internal benchmark rate for banks used for benchmarking floating rate loans effective from 1st April 2016
- MCLR is based on cost of funds for banks and is derived as sum of marginal cost of funds, negative carry on account of CRR, operating costs of banks and tenor premium
- As MCLR is closely linked to repo rate, it will improve the transmission of RBI’s repo rate cut to the end borrower
- Banks publish MCLR for at least five durations which are overnight MCLR, 1 month MCLR, 3 month MCLR, 6 month MCLR and 1 year MCLR. However banks may publish MCLR base rates for more than five periods. The banks may revise the MCLR rate every month.
- Interest rate on each floating rate loan would be reset on based on the duration of the MCLR to which it is linked
MCLR, Base Rate Trend, PLR Trend of All Banks in India
| Bank MCLR, Past Trend | Current MCLR Rate – 20th Jul 2017 | Base Rate | Latest Update |
|---|---|---|---|
| SBI MCLR Base Rate | 7.75% - 8.15% | 9.00% | 01st Jul 17 |
| HDFC PLR | - | 16.15% | 19th Jan 17 |
| ICICI Bank MCLR Base Rate | 7.85% - 8.20% | 9.10% | 01st Jul 17 |
| Axis Bank MCLR Base Rate | 7.80% - 8.35% | 9.05% | 17th Jun 17 |
| PNB Housing Finance PLR | - | 14.35% | 27th Apr 15 |
| LIC Housing Finance PLR | - | 14.20% | 10th Oct 15 |
| Citibank MCLR Base Rate | 8.10% - 8.20% | 8.70% | 07th Jul 17 |
| Standard Chartered Bank MCLR Base Rate | 8.20% - 9.00% | 8.70% | 07th Jul 17 |
| DBS Bank MCLR Base Rate | 8.00% - 8.40% | 8.40% | 07th Jul 17 |
| DHFL PLR | - | 18.30% | 08th Oct 15 |
| UCO Bank MCLR Base Rate | 8.15% - 8.60% | 9.70% | 10th Jun 17 |
| Union Bank of India MCLR Base Rate | 7.90% - 8.50% | 9.20% | 01st Jul 17 |
| Vijaya Bank MCLR Base Rate | 8.35% - 8.75% | 9.65% | 07th Feb 17 |
| United Bank of India MCLR Base Rate | 8.20% - 8.75% | 9.65% | 16th Jun 17 |
| Andhra Bank MCLR Base Rate | 8.45% - 8.65% | 9.70% | 15th Jul 17 |
| State Bank of Travancore MCLR Base Rate | 7.95% - 8.55% | 9.95% | 01st Mar 17 |
| Bank of India MCLR Base Rate | 8.00% - 8.40% | 9.55% | 10th Jul 17 |
| Bank of Maharashtra MCLR Base Rate | 8.30% - 8.75% | 9.70% | 07th Jul 17 |
| Canara Bank MCLR Base Rate | 8.05% - 8.40% | 9.40% | 07th Jul 17 |
| Central Bank of India MCLR Base Rate | 7.90% - 8.40% | 9.70% | 01st Jul 17 |
| Dena Bank MCLR Base Rate | 8.20% - 8.55% | 9.70% | 01st Jul 17 |
| Punjab and Sind Bank MCLR Base Rate | 8.60% - 9.10% | 9.70% | 07th Jul 17 |
| State Bank of Hyderabad MCLR Base Rate | 8.30% - 8.75% | 9.75% | 01st Mar 17 |
| State Bank of Mysore MCLR Base Rate | 8.30% - 8.90% | 9.65% | 01st Mar 17 |
| State Bank of Patiala MCLR Base Rate | 8.05% - 8.45% | 9.65% | 15th Mar 17 |
| Bajaj Finserv PLR | - | 20.16% | 01st May 14 |
| Capital Local Area Bank MCLR Base Rate | 9.50% - 9.50% | 10.25% | 10th May 17 |
| Bandhan Bank MCLR Base Rate | 10.30% - 10.83% | 12.00% | 04th Jul 17 |
| IDFC Bank MCLR Base Rate | 7.85% - 8.75% | 9.50% | 01st Jul 17 |
| Allahabad Bank MCLR Base Rate | 8.00% - 8.75% | 9.70% | 10th Jul 17 |
| Nainital Bank MCLR Base Rate | 8.20% - 9.15% | 9.75% | 07th Jul 17 |
| Corporation Bank MCLR Base Rate | 8.15% - 8.75% | 9.65% | 15th Jul 17 |
| Bank of Baroda MCLR Base Rate | 8.10% - 8.65% | 9.60% | 07th Jul 17 |
| IIFL PLR | - | 17.50% | 01st Apr 14 |
| Reliance Capital PLR | - | 18.00% | 01st Nov 15 |
| GIC Housing Finance PLR | - | 15.00% | 30th Nov -1 |
| Edelweiss PLR | - | 17.50% | 30th Nov 15 |
| HSBC Bank MCLR Base Rate | 7.75% - 8.00% | 9.00% | 03rd Jul 17 |
| Deutsche Bank MCLR Base Rate | 7.75% - 9.25% | 8.95% | 07th Jul 17 |
| BNP MCLR Base Rate | 7.95% - 8.70% | 8.90% | 01st Jul 17 |
| Yes Bank MCLR Base Rate | 7.90% - 8.85% | 10.25% | 01st Jul 17 |
| RBL Bank MCLR Base Rate | 9.45% - 9.85% | 10.40% | 22nd May 17 |
| Kotak Bank MCLR Base Rate | 7.75% - 8.65% | 9.20% | 01st Jul 17 |
| Karur Vysya Bank MCLR Base Rate | 8.80% - 9.10% | 10.10% | 07th Jul 17 |
| IndusInd Bank MCLR Base Rate | 8.40% - 9.30% | 10.55% | 17th Jun 17 |
| Repco Home Finance PLR | - | 16.00% | 30th Nov -1 |
| IDBI Bank MCLR Base Rate | 8.05% - 8.75% | 9.50% | 07th May 17 |
| Indian Bank MCLR Base Rate | 8.15% - 8.90% | 9.45% | 03rd Jul 17 |
| Indian Overseas Bank MCLR Base Rate | 8.35% - 8.75% | 9.50% | 05th Jul 17 |
| Lakshmi Vilas Bank MCLR Base Rate | 9.50% - 9.50% | 10.50% | 01st Jul 17 |
| Jammu And Kashmir Bank MCLR Base Rate | 7.85% - 9.15% | 9.50% | 10th Jul 17 |
| Federal Bank MCLR Base Rate | 8.60% - 8.90% | 9.63% | 16th Jul 17 |
| Tamilnad Mercantile Bank MCLR Base Rate | 9.15% - 9.40% | 10.30% | 01st Jul 17 |
| South Indian Bank MCLR Base Rate | 8.00% - 9.10% | 10.00% | 20th Jun 17 |
| Karnataka Bank MCLR Base Rate | 8.35% - 8.90% | 10.25% | 01st Jun 17 |
| Dhan Laxmi Bank MCLR Base Rate | 8.90% - 9.85% | 11.40% | 07th Jul 17 |
| Development Credit Bank MCLR Base Rate | 8.75% - 9.98% | 10.64% | 04th Feb 17 |
| City Union Bank MCLR Base Rate | 9.00% - 9.25% | 9.75% | 01st May 17 |
| Catholic Syrian Bank MCLR Base Rate | 8.10% - 9.90% | 10.25% | 01st Jul 17 |
| Indiabulls PLR | - | 16.90% | 01st Feb 17 |
| HDFC Bank MCLR Base Rate | 7.85% - 8.45% | 8.90% | 07th Jul 17 |
| Syndicate Bank MCLR Base Rate | 8.05% - 8.60% | 9.50% | 10th Jul 17 |
| SBBJ MCLR Base Rate | 8.20% - 8.80% | 9.70% | 01st Mar 17 |
| PNB MCLR Base Rate | 8.00% - 8.65% | 9.35% | 01st Jul 17 |
| OBC MCLR Base Rate | 8.10% - 8.45% | 9.65% | 11th Jul 17 |
| LT Housing Finance PLR | - | 17.35% | 30th Nov -1 |
Base Rate
- Base Rate is the minimum interest rate at which a bank can lend except for loans to its own employees, its retired employees and against bank’s own deposits
- All floating and fixed rate loans sanctioned by banks before 1st April, 2016 were priced using base rate as benchmark.
PLR
- PLR (Prime Lending Rate) is the internal benchmark rate used for benchmarking floating rate loans sanctioned by Non Banking Financial Companies (NBFC) and Housing Finance Companies (HFC)
- PLR is calculated based on average cost of funds
- NBFC and HFC generally price loan at discount on their existing their PLR.
How does MCLR base rate works?
You need to consider two parameters while taking floating rate home loan or business loan
- Reset Frequency: The applicable MCLR rate will be the rate corresponding to the interest rate reset frequency of the loan. So, a home loan with a reset frequency every one year will be priced with the 1 year MCLR as the benchmark and a home loan with a 3 month reset will be price with the 3 month MCLR as the benchmark.
- Spread: You need to consider the spread (margin that you pay over the banks MCLR) for the particular loan type of the bank. The margin charged would be fixed at time of sanction and can be changed only if there is change in customers’ credit profile. For instance, Bank A has 1 year MCLR of 9.1% and spread of 0.2 % for home loan. The interest rate that you will be charged in this case would be 9.3%.
MCLR Rate
- Borrowers who have taken loan from banks before 1st April 2016, their loan will be priced at base rate, instead of MCLR
- If you check the MCLR and base rate of banks shown above, you will notice that MCLR rates are mostly 5 - 50 bps lower compared to base rate. The reason for this is MCLR is closely linked to repo rate, and hence it has improved the transmission of RBI’s repo rate cut to the end borrower
- In the current economic scenario where interest rate and bonds yields are falling, and hence banks are compelled to reduce the MCLR, it would be wise to switch from base rate to MCLR rate regime. All existing borrowers have the option of shifting to MCLR regime by paying a conversion fee of 0.5-1% of the loan amount
Impact of MCLR on Interest rate, loan tenure and EMI’s
- As MCLR is closely linked to cost of funds of banks and the repo rate, hence any change in the repo rate will impact your floating interest rate on home loan or business loan
- When a bank reduces the MCLR, your interest rate on floating home loan will be reduced. Generally this will not have any impact on EMI paid but it will impact the loan tenure
