Proposed base rate for banks will bring transparency: Assocham
Industry body Assocham today said the Reserve Bank"s panel suggestion to have base rate for lending would ensure transparency and efficiency in pricing loans, which the current system of BPLR does not provide. - Tea with BS: Swati Piramal">Tea with BS: Swati Piramal - Govt should continue stimulus for 2 yrs to boost eco: Assocham - NCR units opt for HP, U"khand to expand base: study - Small film makers earn big profits in Tamil Nadu - IIP in double digits at 10.4% - Assocham appoints Swati Piramal as its new president "The current methodology adopted by banks for calculating benchmark prime lending rate (BPLR) is not transparent since it is never disclosed to the public," it said in a statement. Yesterday, an RBI working group recommended the replacement of the BPLR system with a base rate mechanism. Under the proposed mechanism, all banks will be required to declare a base rate and charge interest rates over that depending upon the credit profile of the borrower and repayment period. The rate would include those cost elements which can be clearly identified and are common across borrowers. The new system of having base rate should be applicable to all customers and not the fresh ones as hitherto, the industry body said. Assocham said that the inefficient and not so well managed banks pass on such cost to borrowers which is neither fair nor competitive. "This will also help to price loans efficiently and dispense with other existing unrelated parameters which include detailing of borrowers fee based business," it said.Payday loan uk commented:
Proposed base rate will bring the transparency and the people will surely benefit the people as they will be acquiring the information really easily
11.08.2011
no credit check loans commented:
Proposed base rate will bring the transparency and the people will surely benefit the people as they will be acquiring the information really easily.
29.08.2011
Kwikpayday commented:
I believe that this will also help to price loans efficiently and dispense with other existing unrelated parameters which include detailing of borrowers fee based business
16.09.2011
payday loans no credit check commented:
Under the base rate system, which will put back the current benchmark prime lending rate, banks would not be allowed to give loans below the base rate to anyone. The PLR has been much harmed as banks offer loans to high rated corporate below this rate, reflecting lack of transparency in the lending rates and the lending process.
01.10.2011
payday loans no credit check commented:
Under the base rate system, which will put back the current benchmark prime lending rate, banks would not be allowed to give loans below the base rate to anyone. The PLR has been much harmed as banks offer loans to high rated corporate below this rate, reflecting lack of transparency in the lending rates and the lending process.
01.10.2011
Wealth Transfer Asia commented:
RBI\'s hike of base rate will affect the consumer a lot again bank will increase their lending rate and government need to take some action to get a nice rate of progress.
15.11.2011