Question
Expand MCLR
Solution
All floating rate rupee loans sanctioned and renewed w.e.f. April 1, 2016 shall be priced with reference to the Marginal Cost of Funds based Lending Rate (MCLR) which will be the internal benchmark for such purposes subject to the provisions contained in paragraph 7 of this Master Direction. The MCLR shall comprise of: a. Marginal cost of funds; b. Negative carry-on account of CRR; c. Operating costs; d. Tenor premium.
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