Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
The base rate was the minimum lending rate below which banks could not lend, used before MCLR and RLLR became the standard benchmarks for new loans.
An older minimum lending rate system, mostly replaced now by MCLR and RLLR.
Introduced in 2010 to replace the Benchmark Prime Lending Rate; loans sanctioned before April 2016 may still be linked to base rate, which resets less frequently than RLLR.
An old home loan from 2014 still linked to base rate may transmit RBI rate cuts slower than a newer RLLR-linked loan.
An older minimum lending rate system, mostly replaced now by MCLR and RLLR.
Base Rate (Banking) helps you evaluate products, compare options, and make informed decisions aligned with goals, tax rules, and risk tolerance in the Indian financial system.