Base Rate

Current Base Rate of All Banks

Last Updated 18th Jan 2017
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  • 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

Base Rate Trend, PLR Trend of All Banks In India

Bank MCLR, Past Trend Current MCLR Rate – 18th Jan 2017 Base Rate Latest Update
SBI MCLR Base Rate 7.75% - 8.15% 9.30% 01st Jan 17
HDFC PLR - 16.30% 05th Oct 15
ICICI Bank MCLR Base Rate 8.00% - 8.20% 9.35% 03rd Jan 17
Axis Bank MCLR Base Rate 7.90% - 8.35% 9.25% 18th Jan 17
PNB Housing Finance PLR - 14.35% 27th Apr 15
LIC Housing Finance PLR - 14.20% 10th Oct 15
Citibank MCLR Base Rate 8.00% - 8.10% 9.10% 07th Jan 17
Standard Chartered Bank MCLR Base Rate 8.50% - 9.40% 9.50% 08th Jan 17
DBS Bank MCLR Base Rate 8.00% - 8.35% 8.60% 07th Jan 17
DHFL PLR - 18.30% 08th Oct 15
UCO Bank MCLR Base Rate 8.25% - 8.70% 9.70% 10th Jan 17
Union Bank of India MCLR Base Rate 8.15% - 8.75% 9.55% 01st Jan 17
Vijaya Bank MCLR Base Rate 8.45% - 8.70% 9.65% 10th Jan 17
United Bank of India MCLR Base Rate 8.30% - 8.80% 9.65% 06th Jan 17
Andhra Bank MCLR Base Rate 8.45% - 8.65% 9.70% 03rd Jan 17
State Bank of Travancore MCLR Base Rate 8.60% - 9.20% 9.95% 02nd Jan 17
Bank of India MCLR Base Rate 8.10% - 8.50% 9.65% 07th Jan 17
Bank of Maharashtra MCLR Base Rate 8.75% - 8.95% 9.70% 07th Jan 17
Canara Bank MCLR Base Rate 8.20% - 8.45% 9.65% 07th Jan 17
Central Bank of India MCLR Base Rate 8.05% - 8.50% 9.70% 01st Jan 17
Dena Bank MCLR Base Rate 8.40% - 8.55% 9.70% 01st Jan 17
Punjab and Sind Bank MCLR Base Rate 8.60% - 9.10% 9.75% 04th Jan 17
State Bank of Hyderabad MCLR Base Rate 8.30% - 8.75% 9.75% 13th Jan 17
State Bank of Mysore MCLR Base Rate 8.85% - 9.45% 9.65% 01st Jan 17
State Bank of Patiala MCLR Base Rate 8.05% - 8.45% 9.65% 15th Jan 17
Bajaj Finserv PLR - 20.16% 01st May 14
Capital Local Area Bank MCLR Base Rate 9.80% - 9.80% 10.40% 01st Dec 16
Bandhan Bank MCLR Base Rate 10.26% - 10.52% 12.00% 03rd Jan 17
IDFC Bank MCLR Base Rate 8.55% - 9.00% 9.50% 01st Jan 17
Allahabad Bank MCLR Base Rate 8.15% - 8.60% 9.70% 10th Jan 17
Nainital Bank MCLR Base Rate 8.30% - 8.60% 9.75% 07th Jan 17
Corporation Bank MCLR Base Rate 8.35% - 8.75% 9.65% 02nd Jan 17
Bank of Baroda MCLR Base Rate 8.10% - 8.65% 9.60% 07th Jan 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 7.90% - 8.10% 9.10% 01st Jan 17
Deutsche Bank MCLR Base Rate 7.85% - 9.35% 9.10% 07th Jan 17
BNP MCLR Base Rate 8.10% - 8.75% 8.90% 01st Jan 17
Yes Bank MCLR Base Rate 8.15% - 8.95% 10.25% 02nd Jan 17
Ratnakar Bank MCLR Base Rate 9.70% - 10.05% 10.60% 22nd Dec 16
Kotak Bank MCLR Base Rate 8.20% - 9.00% 9.30% 01st Jan 17
Karur Vysya Bank MCLR Base Rate 9.20% - 9.60% 10.30% 07th Jan 17
IndusInd Bank MCLR Base Rate 8.40% - 9.10% 10.60% 17th Jan 17
Repco Home Finance PLR - 16.00% 30th Nov -1
IDBI Bank MCLR Base Rate 8.50% - 9.30% 9.65% 01st Jan 17
Indian Bank MCLR Base Rate 9.15% - 9.65% 9.65% 07th Oct 16
Indian Overseas Bank MCLR Base Rate 8.45% - 8.85% 9.70% 07th Jan 17
Lakshmi Vilas Bank MCLR Base Rate 10.15% - 10.20% 10.50% 01st Jan 17
Jammu And Kashmir Bank MCLR Base Rate 8.75% - 9.55% 9.50% 10th Oct 16
Federal Bank MCLR Base Rate 8.70% - 8.95% 9.63% 16th Jan 17
Tamilnad Mercantile Bank MCLR Base Rate 9.10% - 9.35% 10.30% 01st Jan 17
South Indian Bank MCLR Base Rate 9.00% - 9.80% 10.00% 01st Jan 17
Karnataka Bank MCLR Base Rate 8.90% - 9.15% 10.25% 01st Oct 16
Dhan Laxmi Bank MCLR Base Rate 9.30% - 10.10% 11.40% 07th Jan 17
Development Credit Bank MCLR Base Rate 8.95% - 10.79% 10.64% 26th Dec 16
City Union Bank MCLR Base Rate 9.50% - 9.75% 10.50% 05th Sep 16
Catholic Syrian Bank MCLR Base Rate 9.40% - 10.10% 10.25% 01st Dec 16
Indiabulls PLR - 17.05% 08th Oct 15
HDFC Bank MCLR Base Rate 7.85% - 8.30% 9.25% 07th Jan 17
Syndicate Bank MCLR Base Rate 8.30% - 8.75% 9.60% 10th Jan 17
SBBJ MCLR Base Rate 8.75% - 9.30% 9.70% 01st Jan 17
PNB MCLR Base Rate 8.20% - 8.75% 9.60% 01st Jan 17
OBC MCLR Base Rate 8.40% - 8.60% 9.65% 03rd Jan 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 Base 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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