Q. What is the full form of MCLR?
Answer: Marginal Cost of Funds based Lending Rate
Notes: Marginal Cost of Funds based Lending Rate (MCLR) is the minimum interest rate, below which a bank is not permitted to lend. It was implemented by the RBI on 1 April 2016, to determine the rates of interests for advances. It is an internal rate of reference for banks, to determine the minimum rates of interests for loans.