How do I decode the floating home loan?

[Nivaran]

Since interest rates are increasing rapidly, should I check if my loan uses the older MCLR benchmark, which has a delayed reset cycle, instead of the newer RLLR that automatically passes on rate cuts?

[Siddarth]

That’s a really smart move to check. Most Indian bank loans are either on MCLR or RLLR. The main difference is that MCLR only updates every few months, so it’s a bit slow to change. RLLR (repo-linked) is much more transparent — it moves almost immediately when the RBI changes rates.

Since rates are going up right now, knowing which one you have helps you plan for your future EMIs. If you're still on MCLR, it might be worth asking your bank to switch you to a repo-linked rate. It could end up saving you a good chunk of interest in the long run.