MCLR- Marginal cost Lending Rates.
With RBI's recent Guidelines, banks are required to use MCLR method to determine home loan interest rates.
In case of a floating rate home loan, the banks are now required to change the interest rate either yearly or every six months. In case you have a fixed rate home loan, you can get in touch with your bank to get information regarding conversion of your fixed rate home loan to the new MCLR-based floating interest rate. At present, introduction of the new MCLR regime has led to a reduction in applicable home loan interest rates.