Mclr: Is the minimum lending rate set by

MCLR is the minimum lending rate set by banks based on their marginal cost of funds. Learn how MCLR affects your loan interest rates, how to calculate it, and how it differs from base rate and RPLR. HDFC Bank has reduced its Marginal Cost of Funds-based Lending Rates (MCLR) by up to 10 basis points (bps) across select loan tenures, a move that could bring relief to borrowers whose loans are linked to this internal benchmark. MCLR, or Marginal Cost of Funds based Lending Rate, is the minimum interest rate below which a bank in India is not permitted to lend, except in specific cases allowed by the Reserve Bank of India (RBI). HDFC Bank loan rates: Borrowers with home, auto, or personal loans connected to the MCLR will see their interest rates adjusted at the time of their next reset period, in line with the revised rates.