Can Borrowers Change The Benchmark During Their Loan Tenure? MCLR Vs EBLR | StartUp Central

When it comes to loans, borrowers often get confused between MCLR & EBLR. The MCLR and Base Rate may appear to be quite similar on the surface. After all, they were implemented with the same objective in mind and are loosely based on similar principles. However, there are crucial factors in each case which separate the two rates. While Marginal Cost of Funds based Lending Rate (MCLR) is the minimum lending rate below which a bank is not permitted to lend. MCLR replaced the earlier base rate system to determine the lending rates for commercial banks. While EBLR or External Benchmarks Lending Rate is directly linked to the repo rate. On the Money Show, we brought on board A R Hemant, Head of Communications, BankBazaar to understand more. Listen in.
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[@prakashranjan5477]

I got a message from hdfc bank that please approve and shift your home loan to EBLR. Should i approve and go for EBLR. PLEASE REPLY.

[@SunilSingh-rg5yn]

No, continue as EBLR

[@SunilSingh-rg5yn]

continue as MCLR