MCLR Base Rate

Last Updated 23rd Feb 2018

Current MCLR Base Rate of All Banks in India

  • Check and Compare MCLR base rate of all banks Click Here
  • Base rate to be aligned to MCLR from 1st April 2018 - RBI in its monetary policy on 7th Feb 2018 has mandated that banks’ base rates be linked to MCLR rates. This will benefit home loan and loan against property borrowers whose loans are linked to base rate. Any increase or decrease in MCLR rates will now automatically be applicable to pre 2016 loans that are benchmarked to base rate.
  • 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 – 23rd Feb 2018 Base Rate Latest Update
SBI MCLR Base Rate 7.70% - 8.10% 8.65% 01st Feb 18
HDFC PLR - 16.15% 19th Jan 17
ICICI Bank MCLR Base Rate 7.80% - 8.20% 8.85% 01st Feb 18
Axis Bank MCLR Base Rate 7.85% - 8.50% 8.95% 17th Feb 18
PNB Housing Finance PLR - 14.35% 01st Mar 17
LIC Housing Finance PLR - 14.20% 10th Oct 15
Bank of Baroda MCLR Base Rate 7.80% - 8.30% 9.15% 07th Feb 18
Citibank MCLR Base Rate 7.80% - 8.05% 8.45% 08th Feb 18
Indiabulls PLR - 16.90% 01st Feb 17
HDFC Bank MCLR Base Rate 7.80% - 8.50% 8.85% 07th Feb 18
IndusInd Bank MCLR Base Rate 8.45% - 9.20% 10.55% 17th Feb 18
Kotak Bank MCLR Base Rate 7.90% - 8.70% 9.10% 01st Feb 18
Yes Bank MCLR Base Rate 7.90% - 9.15% 10.25% 01st Feb 18
RBL Bank MCLR Base Rate 8.95% - 9.45% 10.10% 22nd Jan 18
IDFC Bank MCLR Base Rate 7.80% - 8.75% 9.50% 08th Feb 18
DBS Bank MCLR Base Rate 8.20% - 8.65% 8.30% 07th Feb 18
Bajaj Finserv PLR - 20.16% 01st May 14
South Indian Bank MCLR Base Rate 8.00% - 9.00% 9.90% 20th Feb 18
Karnataka Bank MCLR Base Rate 8.25% - 8.75% 10.25% 01st Feb 18
Karur Vysya Bank MCLR Base Rate 8.30% - 9.00% 10.10% 07th Jan 18
PNB MCLR Base Rate 7.65% - 8.45% 9.15% 01st Feb 18
Vijaya Bank MCLR Base Rate 7.90% - 8.75% 9.65% 07th Feb 18
Lakshmi Vilas Bank MCLR Base Rate 8.80% - 9.20% 10.15% 01st Feb 18
United Bank of India MCLR Base Rate 7.90% - 8.60% 9.65% 06th Nov 17
Union Bank of India MCLR Base Rate 7.70% - 8.30% 8.95% 01st Feb 18
UCO Bank MCLR Base Rate 7.90% - 8.45% 9.60% 10th Jan 18
Syndicate Bank MCLR Base Rate 7.95% - 8.45% 9.50% 10th Feb 18
LT Housing Finance PLR - 17.35% 01st Jan 70
OBC MCLR Base Rate 8.10% - 8.35% 9.45% 11th Dec 17
Standard Chartered Bank MCLR Base Rate 7.95% - 9.15% 8.35% 08th Feb 18
Punjab and Sind Bank MCLR Base Rate 7.90% - 8.80% 9.70% 07th Jan 18
Jammu And Kashmir Bank MCLR Base Rate 7.65% - 9.05% 9.50% 10th Feb 18
Indian Overseas Bank MCLR Base Rate 8.00% - 8.60% 9.45% 10th Nov 17
DCB Bank MCLR Base Rate 8.35% - 9.72% 10.44% 18th Jul 17
Allahabad Bank MCLR Base Rate 7.75% - 8.50% 9.70% 01st Dec 17
Corporation Bank MCLR Base Rate 7.80% - 8.65% 9.65% 15th Feb 18
Central Bank of India MCLR Base Rate 7.70% - 8.30% 9.60% 01st Feb 18
Canara Bank MCLR Base Rate 7.85% - 8.30% 9.40% 07th Feb 18
Bank of Maharashtra MCLR Base Rate 8.10% - 8.65% 9.60% 07th Feb 18
Bank of India MCLR Base Rate 7.70% - 8.30% 9.45% 10th Feb 18
Bandhan Bank MCLR Base Rate 9.69% - 10.71% 12.00% 07th Feb 18
Dena Bank MCLR Base Rate 7.90% - 8.30% 9.60% 01st Feb 18
Dhan Laxmi Bank MCLR Base Rate 8.70% - 9.65% 11.25% 07th Feb 18
Indian Bank MCLR Base Rate 7.85% - 8.70% 9.45% 12th Feb 18
IIFL PLR - 17.50% 01st Apr 14
IDBI Bank MCLR Base Rate 8.00% - 8.70% 9.50% 12th Feb 18
HSBC Bank MCLR Base Rate 7.80% - 8.15% 8.90% 01st Feb 18
GIC Housing Finance PLR - 15.00% 30th Nov -1
Federal Bank MCLR Base Rate 8.60% - 8.90% 9.63% 16th Feb 18
Edelweiss PLR - 17.50% 30th Nov 15
DHFL PLR - 18.30% 08th Oct 15
Andhra Bank MCLR Base Rate 7.85% - 8.40% 9.55% 15th Feb 18

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
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