Interest Rates on Loans and Advances

Marginal Cost of funds based Lending Rate (MCLR) with effective from 16.08.2019


Floating Rates Loans (Interest Rates linked to MCLR)

*Interest rates offered will be based on the risk profile of customer and proposed facility. For more details, including rates for other advance schemes, contact your nearest branch.

Loans with Fixed Interest Rates

The MCLR is computed by taking into account –
a) Bank's marginal cost of funds,
b) Negative carry on Cash Reserve Ratio (CRR),
c) Operating costs, and
d) Tenor premium.
Bank's final lending rates for various types of loans and advances are arrived at by adding the spread to the MCLR of tenor corresponding to the residual period to next interest reset of the loan. MCLR linked rates of interest are applicable for all loans and advances sanctioned/ disbursed/ renewed on or after 01st April 2016.
MCLR prevailing on the day loan is disbursed will be applicable till the next reset date, irrespective of the changes in the benchmark during the interim. The reset dates are linked to the MCLR review date and reset frequency.
For all existing loans linked to MCLR with different interest reset periods, the reset date will be aligned to the MCLR review date i.e 16th of the month instead of 01st of the month as followed hitherto.
Borrowers whose accounts are linked to BPLR/ Base Rate can approach the Branch Manager for conversion of their loan accounts to MCLR linked interest rates*. 
* Conditions apply