MCLR vs Repo: The home loan switch that could make your ₹9 lakh richer

Produced by: Manoj Kumar

Silent Bleed

Still stuck on an MCLR loan? You could be overpaying by thousands every month—without even realizing it. RBI cuts might be coming, but your bank’s slow reset means you’re the last to benefit.

Rate Trap

Banks love MCLR—it gives them time to delay passing on rate cuts. But borrowers? They lose up to ₹9 lakh over two decades. That’s not a margin—it’s daylight robbery with fine print.

Repo Rocket

Repo rate-linked home loans slash EMIs fast. One 50 basis point RBI cut could save you ₹1,569/month—no begging, no delay, just automatic savings in your bank account.

₹8.9 Lakh Switch

A borrower moving from an 8.5% MCLR loan to a 7.5% repo-linked one on a ₹60 lakh loan can save nearly ₹9 lakh—even after switching costs. Why aren’t more people doing this?

Reset Roulette

MCLR rates reset every 6 to 12 months. Repo-linked loans reset in 3 months or less. That’s the difference between a quick EMI drop and a year-long wait that bleeds your savings.

Transparent Edge

Repo-linked loans tie directly to RBI’s public rate—no secret formula, no opaque math. Just one visible benchmark + a fixed spread. Finally, a home loan that doesn’t hide the game.

EMI Hack

Want to clear your loan faster? Keep your EMI the same after a rate cut—and shave 12–18 months off your tenure. That’s how smart borrowers turn repo cuts into freedom.

Transfer Jackpot

One balance transfer to a repo-linked lender can change everything. Lower interest, faster resets, and transparent tracking. Cost: ₹25–35K. Savings: Up to ₹9 lakh.

Deadline Debt

MCLR may sound technical—but the cost is very real. Every month you delay switching, you burn money you’ll never get back. And in falling rate cycles, the loss compounds fast.