What is Base Rate?

[sarita sharma]

Hey Guys,

Being a MBA finance student , I keep myself updated with financial news. On November 6, i read that SBI has hiked its base rates. in my view may be its rated to some hike in interest rates on all sort of loans. But i want to know the actually meaning of base rate?

 

[Mr.G]

http://businesstoday.intoday.in/story/understanding-base-rate/1/8806.html

 

[sarita sharma]

So, this increase in base rate means that there will be increase in rates for all the loans offered by banks like home loan, car loan , personal loan etc.????

 

[Melanie]

correct! This link may help you http://articles.timesofindia.indiat...79491_1_base-rate-bplr-system-home-loan-rates

Good luck with your studies.

 

[gibl]

Base rate means the minimum interest rate which a bank can charge from its customers for lending money.It is governed by RBI.