How will the latest RBI rate hike impact home loan EMIs, FDs rates, housing market? | In Focus podcast
In Focus by The Hindu
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Is There a Guideline That Distorts Rate Hikes?
In 1991 when interest rates were deregulated, there was no benchmark available for banks in terms of how to price loans. In 1994, RBI introduced the prime lending rate framework. And we are currently in a system which is called the marginal cost of funds based lending rate (MCLR) This means that all your lending has to be benchmarked to your specific MCLR. So while there's a lot of transparency in terms ofHow this MCLR is calculated, it also depends on many different factors like credit growth and operational expenses.
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