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Marginal Cost Of Funds. The incremental cost of borrowing more money to fund additional asset purchases or investments. In its simplest calculation, the marginal cost of funds is simply the interest rate on the new loan balance.
MCLR, Base Rate Trend, PLR Trend of All Banks in India. 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 bankâs own deposits. All floating and fixed rate loans sanctioned by banks before 1st April, 2016 were priced using base rate as benchmark.