august dena bank has the 1year mclr at 855 per cent while the oriental bank of commerce bank had revised 1year mclr to 845 percent in july since april 1 2016 every bank has to review and declare its mclr every month banks publish overnight one month three months six months one year two years three years mclr rates each month home loans are typically linked to 6 and 12month mclr of banks also read heres how mclr linked home loan works mclr based borrowers all those mclr based home loan borrowers who had either taken loan after april 1 2016 or shifted from the base rate the falling mclr has helped but unlike in the base rate era the benefit of falling mclr is not that immediate in the present regime this is because for most mclrlinked home loan contracts the banks reset the interest rate after 12 months for their home loan borrowers so if someone has taken home loan from a bank say in apriljune 2016 the next reset date would have been in apriljune 2017 the banks are mandated to pass on the benefits to the customers each time the interest rate is reset says navin chandani chief business development officer bankbazaar in the mclr based lending the interest rate of the home loan gets repriced on a periodical basis as per the rbi rules the periodicity of reset shall be one year or lower the exact periodicity of reset shall form part of the terms of the loan contract effectively there is a waiting period usually 6 or 12 months for the borrowers to see an impact on the emis most banks however reset them after a year so if one has taken a home loan in august 2017 and the rbi cuts repo rate in october 2017 even though banks mclr comes down in the same month the effect of it for the borrower will be seen in august 2018 only in most cases the markup or the spread is a part of the loan agreement and remains fixed for the tenor of the loan only the mclr part of the interest is recalculated to reflect the revised rates however the banks may retain the right to change the spread in some cases read the loan agreement carefully and even check with the lender before you sign up for the loan says chandani also read should one choose 6 or 12 months mclr linked home loan markup or spread for a mclrlinked home loan customer the resetperiod is only one part of the story the other important factor is the spread which the banks are allowed to levy over and above the mclr the actual rate of home loan interest can be equal to the mclr or have a markup or spread but can never be lower than the mclr say the bank mclr is 85 per cent the actual home loan interest rate could become 9 per cent ie with a 050 per