I have discussed the question of whether you should switch your home loan from Base Rate to MCLR in an earlier post. Most of us focus only on the interest rate and the switch fee while deciding but tend to ignore spread while making the decision to switch from Base Rate to MCLR. From April… Continue Reading
You know that your credit score plays an important role in getting a loan. A lower credit score can simply ruin your chances of getting a loan. What you perhaps didn’t know was that a good credit score could get you better interest rates. Although it may already be happening internally, nothing was out in… Continue Reading
I have been getting many queries from home loan borrowers pertaining to shift from base rate to MCLR? I have discussed this aspect in an earlier post. Even though the option of switching from base rate to MCLR is worth exploring, there is another option that many borrowers can exercise when it comes to Home loans:… Continue Reading
Recently, State Bank of India cut its MCLR (Marginal Cost of Funds based lending rate) by 0.9% p.a. from 8.9% p.a. to 8.0% p.a. This is bonanza for those who are planning to take a home loan this new year. Many other banks have followed suit and cut the MCLR rates sharply. However, this rate cut… Continue Reading
Should I switch my home loan from base rate to MCLR? Many readers of EMICalculator have have asked me this question by e-mail or in a comment on the website. A typical query goes like this: I have an outstanding loan of, say, 20 lacs at, say, 9.8% per annum. It is a base rate linked loan. My… Continue Reading
Starting April 1, 2016, all floating rate loans (and select fixed rate loans) are now linked to Marginal Cost of Funds based Lending Rate (MCLR). You will get loans at a spread over MCLR. What is MCLR? How is it calculated? How is it different from Base Rate regime? Why has RBI asked banks to… Continue Reading