What is BLR(Base lending rate in banks)
What is BLR(Base lending rate in banks)
www.shakyamuniacademy4ca.com (CA Coaching center) (371 Points)
06 June 2009
1 Replies
Pratyush Mittal
(Equity analyst & Web Developer)
(58 Points)
Replied 06 June 2009
BLR or Prime Lending Rate is the optimum rate of lending of a bank. The loans given by the bank are with respect to this PLR (depending upon the risk).
Say PLR of a bank is 12%. Then a loan will be represented by something like +2% over PLR, meaning the lending rate will be 14%. Thus if PLR goes down to say 10% then the interest on that loan will to go down by 2% to become 12%.
You can also go through a good presentation created by me to explain the loan appraisal process by banks https://dalaal-street.com/bank-loan-insight/ .
Hope that helps.
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