Base rate to mclr
This query is : Resolved
03 November 2016
Dears,
This is regarding the change from Base rate to MCLR system.
RBI have given the instruction to adopt the MCLR system.
But what will happen to the Base rate system? The products which are already sold with Base rate, how to deal with this? Is there any guideline from RBI to deal with the Base rate after implementing MCLR.
The question comes here because banks have adopted the MCLR system and cutting the interest rates as per RBI revisions. But the loans which were sanctioned before starting the MCLR system are not getting any benefit of rate cuts. The customer has to get converted the loan from Base Rate to MCLR and banks are charging for it.
Could someone please help.?
Regards
This is regarding the change from Base rate to MCLR system.
RBI have given the instruction to adopt the MCLR system.
But what will happen to the Base rate system? The products which are already sold with Base rate, how to deal with this? Is there any guideline from RBI to deal with the Base rate after implementing MCLR.
The question comes here because banks have adopted the MCLR system and cutting the interest rates as per RBI revisions. But the loans which were sanctioned before starting the MCLR system are not getting any benefit of rate cuts. The customer has to get converted the loan from Base Rate to MCLR and banks are charging for it.
Could someone please help.?
Regards
Amol S Joglekar
(Expert)
04 November 2016
please follow the link.
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=36596
fixed rate loans are EXEMPT from MCLR.
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=36596
fixed rate loans are EXEMPT from MCLR.
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