Personal loans have always been a virtuous option considered during an urgent requirement of a large sum of money. These loans can be easily obtained and used for various purposes. Syndicate bank is one of the big banks known for its personal loans at pretty competitive rates. The interest rates are now applicable as per the MCLR system.
The RBI released the MCLR system on 1st April 2016. All the major banks opted for this system. However, the existing customers have an option to continue their interest payment on the base rate or shift to the MCLR system.
As per the RBI guidelines, Syndicate bank has opted for the MCLR system. Various economic factors such as the cash reserve ratio (CRR), operating costs, repo rate, etc. help determine the MCLR rates. This system is widely considered to be fairer than the traditional base rate method.
| MCLR Tenure | MCLR benchmark rates |
|---|---|
| Overnight | 9.50 |
| 1 Month | 9.55 |
| 3 Months | 9.55 |
| 6 Months | 9.60 |
| 1 Year | 9.65 |
The Base rate and BPLR rates for the existing borrowers is 9.70 % and 19.95 % respectively.
The existing customers have an option to choose between the base rate and MCLR rates.
Also note, the interest rates are subject to change without any prior notice. The bank can change at its sole discretion. Thus, before applying, check the current rates with the bank.
