MCLR Revised: Is Your EMI About to Go Up?

Indian Bank has revised its MCLR and TBLR lending rates on select tenors. If your loan is linked to MCLR, your EMI could change at your next reset date. Here's what you need to check right now.

Here's what happened: Indian Bank revised its Marginal Cost of Funds-based Lending Rate (MCLR) and Treasury Bill Linked Rate (TBLR) on select tenors, effective from the revision date.. MCLR is the internal benchmark banks use to price floating-rate loans — your EMI resets periodically based on whichever tenor your loan is tied to.. While key long-tenor benchmarks remained unchanged, even small revisions on short-to-mid tenors can push up EMIs for lakhs of borrowers at their next reset cycle..

What you should do: Check your loan sanction letter or bank statement to find out which benchmark (MCLR, RLLR, or EBLR) your loan is linked to and the reset frequency.. Call your bank or log into net banking to see if your MCLR tenor has been revised — ask for the revised rate sheet in writing before your next reset date.. Compare whether switching to an RLLR/repo-linked loan (EBLR) would give you a lower rate — many banks allow this switch for a one-time fee of ₹500–₹2,000..

MCLR resets happen on a fixed anniversary date — not immediately. Ask your bank your exact reset date so you know exactly when your EMI will change, not guess.