If you want to take out a home loan, you will have to repay the money with interest. Now, you may be wondering how banks set these interest rates. That`s where BLR comes in. The full BLR form is Basic Loan Rate. I will try to explain the meaning in simple terms. Here, everything revolves around the full form blR. I hope you have the idea now. displays only slang/Internet definitions (display 32 definitions) BLPI – BLPL – BLPS – BLPT – BLQ – BLRB – BLRC – BLRF – BLRG – BLRGZ In India, four components determine the base rate. These components are: Get home loans from your favorite banks at the lowest interest rate at NoBroker! So, if we think about it, the prime rate in India is set by the RBI, and below that rate, banks cannot lend money to their customers. Simply put, BLR is known as the base rate set internally by the bank to decide how much to charge a buyer while opting for a home loan. The interest rate is usually determined by the overnight policy rate (BPR).
THE RPT is the interest rate at which banks lend money to each other. So, just to remind you, the Reserve Bank of India lends money to banks like the State Bank of India or the Punjab National Bank (PNB). While you opt for a home loan, banks will always give you an offer of the BLR interest rate, plus or minus the percentage.