In my two previous pieces, I explained how banks are looting home loan borrowers under the benign gaze of the regulator, the Reserve Bank of India (RBI). In this piece I will try to paint how big the loot is, and how flawed the marginal cost of fund-based lending rate (MCLR) structure is. For this piece, I encouraged Shirniwas Marathe, a retired banker who has gone into the depths of the issue of home loans, to do some calculations. He has come up with some stunning numbers to indicate the extent of overcharging going on under the overall floating rate
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