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What does periodicity of reset means?

In case of floating rate loans, the Banks can specify dates of interest reset which will be linked to either the date of first disbursement or date of review of MCRL.

The periodicity of reset will be one year or lower. The exact periodicity of reset will form part of the terms of the loan contract.

For loans disbursed in a particular month, the reset date will be the 1st day of the month of the subsequent year(s). e.g. if the loan is disbursed during any day of April 2016, the reset date for the said loan will be April 1, 2017

If, however, the customer opts for any rate conversion in a particular month, then the annual reset date will be 1st day of the month (in which the conversion is effected) of the subsequent year(s). e.g. if the loan is disbursed on April 20, 2016 and subsequently in the month of September 2016, the customer opts rate conversion which is effected on September 12, 2016, the reset date for the said loan will be September 1, 2017