The marginal cost of funds-based lending rates (MCLR) of two significant public sector banks, Bank of Baroda and Canara Bank, have decreased by five basis points during a few chosen tenures. For borrowers with floating-rate personal, vehicle, or house loans, the action may result in reduced EMIs.
The lowest interest rate a bank can charge when making loans is known as the Marginal Cost of Funds-based Lending Rate, or MCLR. It determines interest rates for loans such as:
Household loans