MCLR vs EBLR: what reset frequency alone did to the same loan
The main difference between an MCLR loan and an EBLR loan is how often the rate resets: usually every twelve months for MCLR, at least every three for EBLR. That sets how quickly a change in the repo rate reaches your EMI, in both directions. The calculator replays one loan both ways to isolate that single difference.
The same loan with quarterly and annual resets
Repo-linked (EBLR-style)
Annual (MCLR-style)
Both loans are run on the repo path with the same spread, so only the reset frequency differs. Real MCLR is set by each lender's own cost of funds, and real spreads differ between the two kinds of loan. This is a picture of reset timing, not a prediction of what switching would do. Lenders may charge a switching fee; ask.
What to ask before thinking about a switch
- What is the switching fee, and is the spread the same after the switch?
- What is the new spread compared with a new customer's?
- Does the switch reset the tenure or the EMI?
Also read EBLR vs MCLR vs PLR and the EBLR, MCLR and PLR calculator.
Questions
Should I switch from MCLR to EBLR?
This page does not recommend it. It shows what reset frequency alone does. A switch depends on the new spread, the switching fee and your lender's terms; ask for them in writing.
How often do MCLR and EBLR loans reset?
EBLR loans reset at least every three months. MCLR loans reset at the interval in your agreement, commonly six or twelve months.
Why would the same loan end at different times?
Because a rate change reaches an EBLR loan sooner than an MCLR loan, so with the EMI unchanged the end date moves earlier or later depending on which way rates moved.