Base Rate - Bench Mark Prime Lending Rate

In this post we shall discuss two very important banking terms which are useful for Banking Exams. Those are Base Rate and Benchmark Lending Rate. Lets start with the definitions first.

BPLR (Benchmark Prime Lending Rate) :

The BPLR is the rate of interest at which commercial banks can lend money to EACH OTHER and to some large corporations. It is called benchmark rate or benchmark lending because it is commonly used to calculate other rates of interest.

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