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Floor rate of interest that is used for pricing a loan i.e. the minimum lending rate fixed by the Bank based on their cost of funds. The final pricing of the loan is done by adding various premia and the profit margin.
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∙ 13y ago
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What is the simple definition of base rate?
Base rate is the rate of interest which is considered as a basis by commercial bank for their lending rate..
What is the prime interest rate?
The "Prime Interest Rate" is the interest rate used by banks to base all their loan interest rates (and sometimes other interest rates) on and is usually lower than the lowest rate charged on loans to customers with the best credit ratings.
Why does your interest rate changes once in a while why does this happen?
The interest rates on savings tend to move in line with interest rates in the economy as a whole. So, if the Bank of England cuts its base rate, the interest rate on your savings will probably fall, too. But sometimes banks and building societies cut rates by much more than the fall in the base rate, or cut their rates when the base rate has not changed at all. This is because they also set interest rates on particular accounts to attract customers and cut them once they have enough customers.
What is the basic interest that banks use?
Banks base their interest rates on the prime rate, which is the rate at which the Federal reserve gives for loans to financial institutions.
If you are borrowing which is best simple or compound interest?
If the rate of interest is the same, simple interest benefits the borrower. Compound interest charges (or pays) interest on the accrued interest as well as the principal amount. This is why the APR (annual percentage rate) may differ from the base interest rate on a loan, or on revolving credit balances.
What are the lowest mortgage interest rates you can get?
The lowest mortgage interest rates one can get are typically near the government base rate. In the UK the base rate has been low for some time so mortgage rates can be as low as 2%.
What is the definition of fixed interest rates?
An interest rate that remains constant throughout the agreed term. If changes in the goverment base rate occur where commercial rates rise or fall you wont be affected.
Which has the lowest interest rate the fixed rate mortgage or the adjustable rate mortgage?
What the base line interest rates are when you are taking out your mortgage will determine which is the best value. Remember what is the lowest rate now may not be the lowest in a couple of years.
What is the current interest rate of a Yes Loan?
I have looked around, but it may not be the most current interest rate, seeing as all I could find was from August 1st, 10.25% was the Base rate, and their prime lending rate was at 19.75% at that time.
How much is Wachovia student loan consolidation interest rate?
A Wachovia student loan consolidation interest rate is is 6.75%. This rate is the base rate set be the US Government sallie mae loans plus wachovias take.
What is the English base rate?
Same as the Bank of England base rate - the key interest rate figure for loans etc which is set monthly by the Bank of England (usually the first Thursday of each month)
What is nominal interest?
Nominal InterestA nominal interest rate is the interest rate that does not compensate for inflation. This is used in relation to "effective interest rate" or "real interest rate."" Real Interest Rate = Nominal Interest Rate - Inflation Rate " Improvement suggested by Palash Bagchi.
