As RBI has changed the interest rate format from base rate to MCLR, I would like to know if they will continue to revise base rate along with MCLR in future.
I have a home loan with interest in base rate format and I am worried that in future if MCLR rate goes further down I may not get benefit out of it.
Thanks for clarification on same
The Reserve Bank will link the base rate for loans given by banks to the MCLR starting April 1, 2018 i.e. from the new financial year. The Marginal Cost of Funds based Lending Rates (MCLR) system was introduced on April 1, 2016 to tackle the problems of the Base Rate regime. With the introduction of the MCLR system, it was expected that the existing Base Rate linked loans and other credit exposures would also migrate to MCLR system. However, this has not happened.
No one sure what may be the next RBI move. If someone predicting, then he is either GOD or a fraud. So simply wait and watch. If it is not benefitting, then the solution is to shift to MCLR based loan.
I was just trying to understand if there is any such possibility based on previous history if any.. I know you guys cant be Gods!! And ofcourse yes if they dont revise base rate i will forsure opt for MCLR.
Most of the replies from you guys are being very sarcastic in nature, i dont think Mr Basu is replying to these queries.. high time to educate the Staff
I am Mr.Basu replying 🙂 No doubt in that. The question you asked is something which neither you nor me can predict. The only thing that is in our hand is to wait and watch.
I am not degrading your question nor I have intention to mock your question. But what I am saying is, wait and watch. If MCLR beneficial to you then move.