Interest Current Affairs, GK & News

Marginal Cost of funds Based Lending Rate (MCLR)

The marginal cost of funds based lending rate (MCLR) refers to the minimum interest rate of a bank below which it cannot lend, except in some cases allowed by the RBI. It is an internal benchmark or reference rate for the bank. MCLR actually describes the method by which the minimum interest rate for loans ..


What is the meaning of Balloon Payment?

A Balloon Payment is a huge sum which is to be paid at the end of the balloon loan like a mortgage, commercial loan and even an amortized loan. It can be a part of both a fixed and flexible interest rate regime. In a balloon loan, only a small part of the principal balance ..


What is Amortization?

Amortization refers to repayment of debt via periodic instalments in stipulated time. Almost all buyers and investors in real estate buy properties on loans which are supposed to be repaid within the given time in form of regular instalments. Latter also includes part of the principal amount and the interest.