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DISSRTTN : What is meant by Marginal Cost of Funds based Lending rate (MCLR) (With an example if possible)?
Can you explain to me what is meant by Marginal Cost of Funds based Lending rate (MCLR)?
Sure! Marginal Cost of Funds based Lending rate (MCLR) is the minimum interest rate below which a bank cannot lend. It is the new methodology of setting lending rates on loans by commercial banks in India. MCLR is based on the banks' own cost of funds and is calculated using the latest data on the cost of borrowing and lending by the bank.