MCLR Rate: Find the Current Marginal Cost of Lending Rate
Explainer📅 25 Jul 2026Plain-English · Educational✔ Reviewed by CA Amit Jain
The Marginal Cost of Lending Rate, or MCLR, determines your loan's interest rate. Find the current rate on the RBI's official website.
What exactly happened
- The MCLR replaced the Base Rate system in 2016.
- The RBI regulates the MCLR to ensure transparency and fairness in lending.
- The MCLR is calculated based on a bank's marginal cost of funds, operating costs, and the cost of maintaining the Cash Reserve Ratio (CRR) and the Statutory Liquidity Ratio (SLR).
- The current MCLR rate is reviewed and updated periodically by banks.
- Banks set the MCLR based on their marginal cost of funds.
Key takeaways
- The MCLR rate affects the interest rate on your loan.
- The current MCLR rate can be found on the RBI's official website.
- A lower MCLR rate can result in a lower loan EMI.
What is the MCLR Rate?
The MCLR rate is the minimum rate at which a bank can lend to its customers. To learn more about the CRR and SLR, visit our Cash Reserve Ratio and SLR Explained pages.
Questions people ask
What is the current MCLR rate?
The current MCLR rate can be found on the RBI's official website. It is reviewed and updated periodically by banks.
How is the MCLR rate calculated?
The MCLR rate is calculated based on the bank's marginal cost of funds, operating costs, and the cost of maintaining the Cash Reserve Ratio (CRR) and the Statutory Liquidity Ratio (SLR).
How does the MCLR rate affect my loan EMI?
The MCLR rate affects the interest rate on your loan, which in turn affects your loan EMI.
plain-English explainer, never regulator text verbatim. Where an exact figure matters, confirm it on the official RBI source.