All existing customers have an option to switch from the existing system of Base rate/MRR/BPLR (BR/BPLR/MRR +/- spread) to the new system of 6 months MCLR (MCLR + spread) without changing the effective rate of interest. No switch fee would be charged for this option. The effect of conversion in the system, from existing system of BR/MRR/ BPLR to new system of 6 months MCLR, will be provided on an immediate basis.
Illustration: If an existing customer with loan amount of ₹ 25,00,000/- is at 9.55% p.a. effective ROI (Base + 0.20% spread) and if the customer opts to switch-over to 6 months MCLR then the Adjustable loan interest rate will become (6 months MCLR (9.20%) + spread (0.35%)) equivalent to 9.55% p.a..
Thus, the effective rate will continue to remain same at 9.55% p.a. with spread applicable on the loan being adjusted.