Banks may specify interest reset times on the drifting rate loans and actually have year reset clause.

Banks may specify interest reset times on the drifting rate loans and actually have year reset clause.

The periodicity of reset is certainly one or lower year. The MCLR prevailing regarding the time the loan is sanctioned is going to be relevant till the following reset date, aside from the alterations in the standard through the interim duration.

The banks reset the interest rate after 12 months for most MCLR-linked home loan contracts. Therefore if some body has had a mortgage from the bank, state in May 2016, the next reset date is likely to be in might 2017. Continue reading