Biznextindia : Private sector DCB Bank on Friday announced revision to its MCLR across tenors and it will be effective from June 06, 2022.
Both the Overnight MCLR and one month MCLR have been revised to 8.51% from the existing 8.28%.
Further, Three Months MCLR revised at 9.21% with Six Months MCLR at 9.41% and One Year MCLR is at 9.46%.
The MCLR refers to the minimum interest rate of a bank below which it cannot lend, except in some cases allowed by the RBI. It is an internal benchmark or reference rate for the bank. MCLR actually describes the method by which the minimum interest rate for loans is determined by a bank – on the basis of marginal cost or the additional or incremental cost of arranging one more rupee to the prospective borrower. The MCLR methodology for fixing interest rates for advances was introduced by the Reserve Bank of India with effect from April 1, 2016. This new methodology replaces the base rate system introduced in July 2010