The MCLR was created by the Reserve Bank of India (RBI) as an alternative to the base rate system. The bank cannot lend below this rate. The MCLR varies with tenor and might range from overnight to three years.
The equated monthly installments are set to rise further as ICICI Bank and Bank of India have revised their marginal cost-based lending rate (MCLR) on loans across tenures. Punjab National Bank, on the other hand, has kept its basic lending rates at the same level. Watch Business Today s Visual Story to note the revised lending rates.