EBLR vs MCLR: compare your home loan rate and cost
EBLR full form: External Benchmark Lending Rate. It is a home loan rate set as an outside benchmark plus a fixed spread. When the benchmark is the RBI repo rate, it is called RLLR, the repo-linked lending rate. MCLR is the Marginal Cost of Funds based Lending Rate, and PLR is the Prime Lending Rate.
| EBLR / RLLR | MCLR | PLR | |
|---|---|---|---|
| Linked to | RBI repo rate (external) | Bank's own cost of funds | The lender's own prime rate |
| Your rate | Repo + fixed spread | MCLR + spread | PLR ± a margin |
| Resets | At least every 3 months | Usually every 12 months | No fixed schedule: when the lender revises it |
| RBI cuts reach you | Within a quarter | Slowly, at the bank's discretion | Slowly, at the lender's discretion |
| Transparency | You can check the benchmark yourself | Set internally by the bank | Set internally by the lender |
| Since | October 2019 for new loans | April 2016 | Used by housing finance companies and NBFCs |
Which is yours? New floating-rate bank retail loans and covered MSME loans have generally been linked to an external benchmark under the RBI’s phased rules since October 2019. Older loans may remain on MCLR or another contractual benchmark. Check your sanction letter and latest loan statement.
Know your type? Use the EBLR, MCLR and PLR calculator to see what a rate change does to your loan, with a separate calculation for each.
RBI update — 7 October 2026: the MPC increased the policy repo rate by 25 basis points, from 5.25% to 5.50%, and changed its stance to calibrated tightening. This does not automatically mean every borrower’s interest rate rises on 7 October. The effect depends on the loan’s benchmark, contractual spread, lender transmission and reset date. Read the RBI MPC resolution.
EBLR vs MCLR home-loan calculator
Compare an illustrative repo-linked EBLR rate before and after the 7 October 2026 decision with the MCLR rate you enter. Use your lender’s actual spread and MCLR figures wherever available.
The MCLR comparison rate is entered by you; the RBI repo-rate change does not mechanically set MCLR. The default 2.65% EBLR spread is illustrative, not prescribed by RBI.
| Comparison | Annual rate | Estimated EMI | Interest over remaining term* |
|---|---|---|---|
| EBLR at previous repo (5.25%) | 7.90% | ₹41,511 | ₹49,62,727 |
| EBLR at new repo (5.50%) | 8.15% | ₹42,290 | ₹51,49,594 |
| MCLR — current rate entered | 8.50% | ₹43,391 | ₹54,13,879 |
| MCLR — comparison rate entered | 8.50% | ₹43,391 | ₹54,13,879 |
Illustrative EBLR effect of the 25-bps repo increase: EMI changes by ₹779 per month; estimated remaining-term interest changes by ₹1,86,866.
*Assumes each displayed rate stays unchanged for the full remaining tenure and the EMI is recalculated on the entered outstanding principal and remaining months. Actual lender resets, fees, contractual terms and repayment choices can change the outcome. This is an estimate, not a bank quote or personalised financial advice.
Questions
What is the difference between EBLR and MCLR?
EBLR links your rate to an external benchmark, usually the RBI repo rate, and must reset at least every three months. MCLR is set by the bank from its own cost of funds and usually resets once a year.
Should I switch from MCLR to EBLR?
Often worth considering, because EBLR passes RBI changes through faster in both directions and is transparent. Ask your bank for the switching fee and the spread you would get on EBLR, and compare the effective rates.
What is the full form of EBLR?
External Benchmark Lending Rate. Your home loan rate is an external benchmark, often the RBI repo rate, plus a spread fixed in your loan agreement. See what the spread is.
Is RLLR the same as EBLR?
Yes. RLLR (repo-linked lending rate) is a form of EBLR where the external benchmark is the repo rate.
What is PLR on a home loan?
PLR is the prime lending rate that housing finance companies and NBFCs — such as LIC Housing Finance, Bajaj Housing Finance or PNB Housing — set for themselves. Your rate is their PLR minus or plus a margin. RBI's repo-linked rules for banks don't apply to it, so the company decides when and how much of an RBI change to pass on.
My loan is from a housing finance company. Should I switch?
Ask your lender whether it offers a repo-linked option and what the rate would be. Many HFCs now do, and on it RBI changes reach you within a quarter. Compare that rate, plus any switching fee, with what you pay today. If your lender doesn't offer one, compare a balance transfer to a bank's EBLR loan — the processing and legal costs usually need a gap of about half a percent to be worth it.
Why did my rate go up quickly after a hike but come down slowly after a cut?
On MCLR and PLR loans the lender sets the rate, and the timing and size of each change, so a repo move can reach you later, by less, or not at all. On EBLR the rate follows the repo rate at every quarterly reset, both ways.