All rupee loans sanctioned and credit limitations renewed after July 1, 2010 (but before April 1, 2016) are priced with regards to the bottom price. There might be only 1 base price for every bank. Under it, banks have actually the freedom to determine the price of funds either based on typical price of funds or on marginal price of funds.
Post MCLR, the current loans connected towards the base price may carry on till repayment or renewal, whilst the instance might be. Current borrowers may also have the choice to go towards the MCLR-linked loan at mutually acceptable terms.