MCLR advantage: Savings up 6-fold from base vote switchover; more bank customers set to migrate

The savings from a switchover to the marginal cost of funds-based lending rate (MCLR) are now so large – almost sixfold, in some cases – after this month’s rate cuts that more customers might migrate to it, reports Shritama Bose in Mumbai. For a Rs 50-lakh loan from State Bank of India (SBI) with a tenure of 20 years, the savings now are nearly Rs 6 lakh.