Karur, Tamil Nadu based private sector bank Karur Vysya Bank has slashed its base rate as well as benchmark prime lending rate to 7.75 and 12.75 percent, respectively. The new rates shall come into effect from December 15, 2021.
As of now the base rate stands at 8 percent, while its BPLR is 13 percent. "We advise that the base rate and BPLR of the bank would be revised with effect from December 15, 2021," KVB said in a regulatory filing.
Karur Bank's lending rate:
Base rate is the minimum rate decided upon by the RBI below which banks cannot carry out lending activities. This as per norms has to be reviewed once every quarter.
Benchmark prime lending rate on the other hand is what the commercial banks in the country charge to most- creditworthy borrowers. Know how the two lending rates are different, here.
Meanwhile, considering the latest scare of economic fall-out due to the new Omicron variant and to continue to provide strong backing to the economy, RBI maintained the status quo with the key policy rate at 4 percent.
With PTI Inputs