NEWS & ADVICE : PERSONAL LOAN
BPLR or Base rate?? Which is better…?
By Vaibhav Aggarwal
Print    Email    RSS   

BPLR or Benchmark Prime Lending Rate is the rate charged by commercial banks to their most credit worthy customers. According to the Reserve Bank of India, banks are free to fix their BPLRs but the interest rates charged by them have to bear relevance to the BPLR. Banks are free to fix BPLRs for credit limit beyond Rs.2 lakhs. Lending rates for the agricultural sector was set by the RBI.

Questions about the BPLR system being out of sync with market conditions have been arising since quite some time. Customers were dissatisfied with this system of lending as they felt banks lent money to strong and rich corporates at sub BPLR rate. Lending operations in a bank act as a major aid in the growth of the economy of a nation. It is through reasonable and just lending rates that banks can direct fund flow in the economy for productive purposes. Also the variation in BPLR was so wide amongst banks that it stretched to over 4% sometimes.

Thus in order to come over all these delinquencies, the RBI appointed a working group headed by Shri Deepak Mohanty to study the ongoing activities pertaining to BPLR and hence present a report. The report was submitted in October 2009. The working group in it report clearly mentioned that it strongly felt that "The BPLR has tended to be out of sync with market conditions and does not adequately respond to changes in monetary policy. In addition, the tendency of banks to lend at sub-BPLR rates on a large scale raises concerns of transparency.....On account of competitive pressures, banks were lending at rates which did not make much commercial sense."


Page  | 123 |  
(Comments Posted : 12) Post Your Comments
1. DO YOU NEED A LOAN TO START UP OR EXPAND YOUR BUSINESS? Zion financial services is a sincere and certified private Loan company approved by the Canada Government, we give out international and local loans to all countries in the world, Amount given out $2,500 to $10 Million. We offer loans with a dependable guarantee to all of our clients. Our loan interest rates are very low and affordable with a negotiable duration.

Available now are
MORTGAGE LOANS, PERSONAL, START-UP & EXPANSION OF BUSINESS LOANS AND NEW ARE UNSECURED & SECURE LOANS, CONSOLIDATE LOANS

Apply for a loan today with your loan amount and duration, Its Easy and fast to get 3% interest rates and monthly installment payments. email us now to apply: zionloanfirm.ltd@aol.com

TO APPLY TO APPLY:
Regards
Peter James
General Manager
zion capital investment, Canada
Email: zionloanfirm.ltd@aol.com
Peter James (Posted: Jan 27, 2015)
2. To whom we sould take housing loan from a bank or NBFC or with base rate or BPLR?
Rahul Rana
RAHUL RANA (Posted: Aug 14, 2014)
3. iam holding a housing loan with IOB from 2008, it was in BPLR, and recently changed to base rate. please adz if Iam entitle for any interest refund from 2010 till date the difference of interest charged.
saseendran (Posted: Jul 19, 2013)
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Loan against Securities: A viable...
Bankers concerned on RBI loan recovery...
A chronicle of excesses by loan recovery...
Carnival of Indian Personal Finance Blogs #4
Personal Loan Vs. Cash advance from credit...


अष्टमी की जोत~Love vashikaran...
///रूहानी///Kings+91-7726888121 Love...
Hydarab =07726888121 // Remove BLack Kala Jadu...
ℭaℒℒ ℊiℛℒs Iℕ Mahipalpur...
((((जय भोलेनाथ))))Husband-wife...
(मदद की पुकार )+918725959357...

NEWS THIS WEEK
LVB bank joined hands with NCML Feb 18, 2015
Syndicate Bank hiring 5000 new staff Feb 12, 2015
SBI donated Rs 8.6 cr as a part of CSR activity Feb 11, 2015
Canara Bank tied up with NHBC Feb 9, 2015
Hiring for Probationary clerks in South Indian Bank Feb 5, 2015
News Archive