Base Rate. What is Base Rate?
Base Rate is the minimum rate below which Bank’s are not permitted to lend barring certain exceptions. It is the minimum rate of interest that a bank is allowed to charge from its customers. Reserve Bank of India (RBI) rule stipulates that no bank can offer loans at a rate lower than the Base Rate to any of its customers.
Base Rate replaced Bank Prime Lending Rate (BPLR) on July 1, 2010.
Present Base Rate: 9.80% – 10.25%