0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
How MCLR is different from the base rate?
After reading many articles I gained knowledge about MCLR and the difference between MCLR and Base Rate. I am sharing my views here on MCLR and Base Rate, if I missed some points so please let me know about it, MCLR means: The Reserve Bank of India has brought another approach of setting loaning rate by business banks under the name Marginal Cost of Funds based Lending Rate (MCLR). It has adjusted the current base rate framework from April 2016 onwards. The MCLR ought to be updated month to month by thinking of some as new components including the repo rate and other borrowing rates. Particularly the repo rate and other borrowing rates that were not unequivocally thought to be under the base rate framework. According to the new rules, banks need to set five benchmark rates for various tenure or time periods ranging from overnight (one day) rates to one year. Now the point come that How MCLR is different from base rate? The base rate or the standard lending rate by a bank is calculated on the premise of the following factors: 1. Cost for the funds (interest rate given for deposits), 2. Operating expenses, 3. Minimum rate of return (profit), and 4. Cost for the CRR (for the four percent CRR, the RBI is not giving any interest to the banks) On the other hand, the MCLR is comprised of the following are the main components. 1. Marginal cost of funds; 2. Negative carry on account of CRR; 3. Operating costs; 4. Tenor premium It is obvious that the CRR costs and operating expenses are the normal components for both base rate and the MCLR.
What is base rate?
current base rate
Will one banking company give you a better rate than another one?
Yes, banks are competitive, so it is always best to shop around for rates.
What is the difference between flat rate and reducing rate in banking?
klklggu ugmm bf
Effect of computerization in banking sector?
Computerization has been a revolution in the banking industry. The advent of the usage of computers has enormously increased the banking capabilities of the banks and they are able to offer better and wider range of services to their customers. Internet banking, mobile banking, ATMs etc. are all the fruits of computerization of the banking industry. Banks are able to expand at a great rate and offer services to more and more customers because of the use of computers.
What is the concert of computerization in banking system?
Computerization has been a revolution the banking industry. The advent of the usage of computers has enormously increased the banking capabilities of the banks and they are able to offer better and wider range of services to their customers. Internet banking, mobile banking, ATMs etc are all the fruits of computerization of the banking industry. Banks are able to expand at a great rate and offer services to more and more customers because of the use of computers.
Impact of computerization in banking system?
Computerization has been a revolutionized the banking industry. The advent of the usage of computers has enormously increased the banking capabilities of the banks and they are able to offer better and wider range of services to their customers. Internet banking, mobile banking, ATMs etc. are all the fruits of computerization of the banking industry. Banks are able to expand at a great rate and offer services to more and more customers because of the use of computers.
Role of computerization in the banking sector?
Computerization has been a revolutionized the banking industry. The advent of the usage of computers has enormously increased the banking capabilities of the banks and they are able to offer better and wider range of services to their customers. Internet banking, mobile banking, ATMs etc. are all the fruits of computerization of the banking industry. Banks are able to expand at a great rate and offer services to more and more customers because of the use of computers.
Where is the best place to get low car loan rates?
Contact the bank that you use for your personal banking they maybe able to give you a better rate. Another idea would be to search the web for a cheap car loan rate.
How do you find the base percentage and rate example numbers?
To find the base, percentage and rateperce ntage = base * rate (rate in decimal)base = percentage/rate (rate in decimal)rate = percentage/base * 100%Example:Base = 10Percentage = 2Rate?Rate = 2/10 * 100% = 20%
Why does computer used in bank?
Computerization has been a revolutionized the banking industry. The advent of the usage of computers has enormously increased the banking capabilities of the banks and they are able to offer better and wider range of services to their customers. Internet banking, mobile banking, ATMs etc. are all the fruits of computerization of the banking industry. Banks are able to expand at a great rate and offer services to more and more customers because of the use of computers.
What is fullform of PLR in banking sector?
Prime lending rate
