Switching3 min read · Updated 17 October 2026
How to move your home loan from MCLR to a repo-linked rate
If your home loan is still on MCLR or an older benchmark, you can ask your lender to move it to a repo-linked rate. How to check, ask, what it may cost and the options.
First, find your benchmark
Look at your sanction letter, loan agreement or Key Fact Statement. It names the benchmark (repo-linked, MCLR, T-bill or an older base rate), the spread above it and when the rate resets. If it says repo-linked, your rate follows the repo rate at the reset. If it says MCLR or base rate, it follows the bank's internal cost of funds. See EBLR vs MCLR.
How to ask for a conversion
- Write to your lender asking to convert the loan to its current repo-linked scheme.
- Ask for the new rate, the spread, the reset date and any conversion fee, in writing.
- Compare the new rate with what lenders list today. See Home loan rates by lender.
- Agree only if the total cost, including any fee, is lower. Our Am I overpaying? tool helps.
What it may cost
Some lenders charge a fee to switch the scheme, and some set a new spread that is higher than the one on a new loan. Ask for the fee and compare it with the interest you would save. A small drop in rate on a large balance can repay a fee within months. Use Switch or stay? to see the break-even.
If your lender says no
You can move the loan to another lender with a balance transfer. Floating-rate home loans to individuals have no prepayment charge, so the costs are the new lender's fees. See is a balance transfer worth it and the documents you need.
Common questions
Can I convert my MCLR home loan to a repo-linked loan?
Usually yes, if your lender offers the option. It may charge a fee and set a new spread, so get the terms in writing.
Is EBLR better than MCLR?
A repo-linked rate changes at least every three months and passes on RBI changes faster. That helps when rates fall and hurts when they rise.
How do I find out whether my loan is repo-linked?
Check your sanction letter, loan agreement or Key Fact Statement for the benchmark, the spread and the reset date.