Marginal cost of funds-based lending rate (MCLR) is influenced by which of the following?

Tenor Premium

Repo Rate

91-days Treasury Bill

Operating Expenses

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Question

Marginal cost of funds-based lending rate (MCLR) is the benchmark lending rate at which banks lend to borrowers for different types of loans. It is determined internally by the bank depending on the period left for the repayment of a loan. The benchmark rate is the lowest rate at which a bank can lend. MCLR tenors vary from overnight to three years. Banks calculate their MCLRs by taking into account the cost of funds taken from the central bank or depositors. The costs are influenced by tenor premium, operating expenses and the cost of maintaining the cash reserve ratio are considered. The RBI introduced the MCLR regime in April 2016.
External Benchmark Lending Rates (EBLR) are the lending rates set by the banks based on external benchmarks such as repo rate, 91 days Treasury bill and 182 days Treasury bill. Every bank can choose any such external benchmark and link its lending rates.

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Marginal cost of funds-based lending rate (MCLR) is the benchmark lending rate at which banks lend to borrowers for different types of loans. It is determined internally by the bank depending on the period left for the repayment of a loan. The benchmark rate is the lowest rate at which a bank can lend. MCLR tenors vary from overnight to three years. Banks calculate their MCLRs by taking into account the cost of funds taken from the central bank or depositors. The costs are influenced by tenor premium, operating expenses and the cost of maintaining the cash reserve ratio are considered. The RBI introduced the MCLR regime in April 2016.
External Benchmark Lending Rates (EBLR) are the lending rates set by the banks based on external benchmarks such as repo rate, 91 days Treasury bill and 182 days Treasury bill. Every bank can choose any such external benchmark and link its lending rates.

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