InvestorQ : What is the benchmark for the interest rate on retail loans currently?
Nishita Gala made post

What is the benchmark for the interest rate on retail loans currently?

Answer
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seema Upadhyaya answered.
1 year ago


The RBI was expected to replace the marginal cost of funds-based lending rate (MCLR) with an external benchmark for fixing retail loan interest rates, as it had stated in its previous monetary policy. However, in it policy statement today, the central bank deferred the decision.

Thus, loans are currently being disbursed on internal benchmarks, i.e., base rate, benchmark prime lending rate (BPLR) and marginal cost of funds-based lending rate (MCLR).