{"id":10257,"date":"2026-07-29T13:32:45","date_gmt":"2026-07-29T08:02:45","guid":{"rendered":"https:\/\/www.fatakpay.com\/blog\/?p=10257"},"modified":"2026-07-29T13:32:47","modified_gmt":"2026-07-29T08:02:47","slug":"what-is-base-rate","status":"publish","type":"post","link":"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-base-rate\/","title":{"rendered":"Understanding\u00a0Base Rate: Definition, Calculation, and Its Impact on Loans\u00a0"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">If&nbsp;you&#8217;ve&nbsp;ever wondered why loan interest rates from different lenders vary, or why older loans&nbsp;seem to be&nbsp;priced differently from newer ones, the answer often traces back to a benchmark system that shaped Indian lending for years.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-base-rate\/#What_is_the_Base_Rate\" >What is the Base Rate?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-base-rate\/#Purpose_and_Importance_of_the_Base_Rate\" >Purpose and Importance of the Base Rate&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-base-rate\/#How_Is_the_Base_Rate_Calculated\" >How Is the Base Rate Calculated?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-base-rate\/#How_Does_the_Base_Rate_Impact_Your_Loan\" >How Does the Base Rate Impact Your Loan?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-base-rate\/#Base_Rate_vs_MCLR_vs_EBLR\" >Base Rate vs MCLR vs EBLR&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-base-rate\/#Why_Understanding_the_Base_Rate_Still_Matters\" >Why Understanding the Base Rate Still Matters&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-base-rate\/#Conclusion\" >Conclusion&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-base-rate\/#FAQs_on_Base_Rate\" >FAQs on Base Rate&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-base-rate\/#Is_base_rate_still_used_by_banks_today\" >Is base rate still used by banks today?&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-base-rate\/#Does_base_rate_apply_to_NBFC_personal_loans\" >Does base rate apply to NBFC personal loans?&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-base-rate\/#What_replaced_the_base_rate_system\" >What replaced the base rate system?&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-base-rate\/#Can_my_old_loan_still_be_linked_to_base_rate\" >Can my old loan still be linked to base rate?&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-base-rate\/#How_often_does_the_base_rate_change\" >How often does the base rate change?&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-base-rate\/#What_is_the_difference_between_base_rate_and_repo_rate\" >What is the difference between base rate and repo rate?&nbsp;&nbsp;<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Base_Rate\"><\/span>What is the Base Rate?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">What is base rate? The base rate is the&nbsp;minimum&nbsp;interest rate a bank can lend at, introduced by the RBI in July 2010 to bring more transparency to loan pricing. It replaced an earlier system where lenders had more discretion in setting rates, making it harder for borrowers to compare offers fairly. No loan, in theory, could be priced below this floor, which meant borrowers had a clearer benchmark to evaluate whether they were getting a fair deal. Understanding the base rate meaning helps borrowers compare older loan agreements and see how lending benchmarks have evolved over time.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Purpose_and_Importance_of_the_Base_Rate\"><\/span>Purpose and Importance of the Base Rate&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The importance of base rate lies in the transparency it brought to loan pricing by providing borrowers with a clear minimum lending benchmark. Before the base rate system, lending rates&nbsp;weren&#8217;t&nbsp;always transparent, and similar borrowers could end up with&nbsp;very different&nbsp;rates depending on negotiation rather than clear criteria. The base rate aimed to fix this by giving every borrower a visible floor rate that reflected a bank&#8217;s actual cost of funds. This made it easier to compare offers across lenders and understand how much of the interest charged was a markup over the base itself.&nbsp;The role of base rate was to ensure fair and transparent lending by creating a common benchmark that reduced arbitrary interest rate pricing.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Is_the_Base_Rate_Calculated\"><\/span>How Is the Base Rate Calculated?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">How is base rate calculated? It is&nbsp;determined&nbsp;by considering several factors that influence a bank&#8217;s cost of&nbsp;lending&nbsp;and the minimum return it needs to&nbsp;operate&nbsp;sustainably. The key components used to calculate the base rate include:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cost of deposits and other borrowed funds\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Operating expenses of running the bank\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A minimum rate of return the bank needs to remain\u00a0viable\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Adjustments periodically reviewed and revised by the lender, subject to RBI guidelines\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Each bank calculated its own base rate using this formula, which is why the exact rate varied from one lender to another even during the same period.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_the_Base_Rate_Impact_Your_Loan\"><\/span>How Does the Base Rate Impact Your Loan?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If your loan was originally priced using the base rate, any change to it directly affects your EMI or tenure. A drop in the base rate could lower your interest cost, while an increase would raise it. Today, most new floating-rate retail loans use newer benchmark systems instead, but borrowers with older loans linked to the base rate can still see their rates move when the base rate is revised.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Base_Rate_vs_MCLR_vs_EBLR\"><\/span>Base Rate vs MCLR vs EBLR&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The base rate is the&nbsp;minimum&nbsp;interest rate a bank can lend at, introduced by the RBI in July 2010; it has since been&nbsp;largely replaced&nbsp;by MCLR (2016) and then EBLR (2019) for most new floating-rate retail loans.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>System<\/strong>&nbsp;<\/td><td><strong>Introduced<\/strong>&nbsp;<\/td><td><strong>Basis<\/strong>&nbsp;<\/td><\/tr><tr><td>Base Rate&nbsp;<\/td><td>2010&nbsp;<\/td><td>Cost of funds, bank-determined&nbsp;<\/td><\/tr><tr><td>MCLR&nbsp;<\/td><td>2016&nbsp;<\/td><td>Marginal cost of funds&nbsp;<\/td><\/tr><tr><td>EBLR&nbsp;<\/td><td>2019&nbsp;<\/td><td>External benchmark (like repo rate)&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Understanding this progression also explains why comparing the\u00a0<a href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/fixed-vs-floating-interest-rate\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>fixed vs floating interest rate<\/strong><\/a>\u00a0structure of your loan matters just as much as knowing which benchmark it follows.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Understanding_the_Base_Rate_Still_Matters\"><\/span>Why Understanding the Base Rate Still Matters&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Understanding the meaning of base rate&nbsp;remains&nbsp;useful even though newer lending benchmarks have replaced it for most new loans. Whether you have an older loan linked to the base rate or simply want to understand how lending benchmarks have evolved, knowing this benchmark can help you make better borrowing decisions in the following ways:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Some older loans\u00a0remain\u00a0linked to it, so it still affects real EMIs\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It helps you understand the history behind today&#8217;s rate systems\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Comparing benchmarks helps you evaluate whether a lender&#8217;s pricing is competitive\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It&#8217;s\u00a0useful context when negotiating a switch to a newer benchmark\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Knowing the terminology helps when reading loan documents or agreements\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Beyond the base rate itself,\u00a0it&#8217;s\u00a0worth understanding the broader\u00a0<a href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/factors-affecting-personal-loan-interest-rate\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>factors affecting personal loan interest rate<\/strong><\/a>\u00a0decisions, since your credit score, income, and lender policies all play a role too.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The base rate may no longer be the primary benchmark for new loans, but it&nbsp;remains&nbsp;relevant for borrowers with older obligations still linked to it, and it offers useful context for understanding how loan pricing evolved. Knowing where your loan&#8217;s rate comes from puts you in a better position to evaluate whether&nbsp;you&#8217;re&nbsp;getting fair terms.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs_on_Base_Rate\"><\/span>FAQs on Base Rate&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_base_rate_still_used_by_banks_today\"><\/span>Is base rate still used by banks today?&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s&nbsp;largely been&nbsp;replaced by newer benchmarks, but some older loans that were originally linked to it may still be affected by its revisions.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Does_base_rate_apply_to_NBFC_personal_loans\"><\/span>Does base rate apply to NBFC personal loans?&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">NBFCs typically use their own internal benchmark systems rather than the RBI&#8217;s base rate framework, which primarily applied to banks, though a&nbsp;<a href=\"https:\/\/www.fatakpay.com\/personal-loan\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><em>personal loan<\/em><\/strong><\/a>&nbsp;from an NBFC is priced using similar underlying principles.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_replaced_the_base_rate_system\"><\/span>What replaced the base rate system?&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">MCLR replaced it in 2016, and EBLR has since become the standard for most new floating-rate retail loans from 2019 onward.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_my_old_loan_still_be_linked_to_base_rate\"><\/span>Can my old loan still be linked to base rate?&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, if your loan was sanctioned before the newer systems came into effect and you&nbsp;haven&#8217;t&nbsp;since switched benchmarks, it may still be linked to the base rate.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_often_does_the_base_rate_change\"><\/span>How often does the base rate change?&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Banks review and revise their base rate periodically based on changes in their cost of funds and other factors, though the frequency varies by lender.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_difference_between_base_rate_and_repo_rate\"><\/span>What is the difference between base rate and repo rate?&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The repo rate is the rate the RBI charges banks, while the base rate was a bank-determined minimum lending rate historically influenced by, but distinct from, the repo rate.&nbsp;<\/p>\n\n\n\n<script type=\"application\/ld+json\"> \n\n{ \n\n  \"@context\": \"https:\/\/schema.org\/\", \n\n  \"@type\": \"BreadcrumbList\", \n\n  \"itemListElement\": [{ \n\n    \"@type\": \"ListItem\", \n\n    \"position\": 1, \n\n    \"name\": \"Home\", \n\n    \"item\": \"https:\/\/www.fatakpay.com\" \n\n  },{ \n\n    \"@type\": \"ListItem\", \n\n    \"position\": 2, \n\n    \"name\": \"Blog\", \n\n    \"item\": \"https:\/\/www.fatakpay.com\/blog\/\" \n\n  },{ \n\n    \"@type\": \"ListItem\", \n\n    \"position\": 3, \n\n    \"name\": \"Personal Loan\", \n\n    \"item\": \"https:\/\/www.fatakpay.com\/blog\/personal-loan\/\" \n\n  },{ \n\n    \"@type\": \"ListItem\", \n\n    \"position\": 4, \n\n    \"name\": \"Understanding Base Rate: Definition, Calculation, and Its Impact on Loans\", \n\n    \"item\": \"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-base-rate\/\" \n\n  }] \n\n} \n\n<\/script> \n\n\n\n<script type=\"application\/ld+json\"> \n\n{ \n\n  \"@context\": \"https:\/\/schema.org\", \n\n  \"@type\": \"BlogPosting\", \n\n  \"mainEntityOfPage\": { \n\n    \"@type\": \"WebPage\", \n\n    \"@id\": \"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-base-rate\/\" \n\n  }, \n\n  \"headline\": \"What Is Base Rate? Meaning, Calculation & Impact\", \n\n  \"description\": \"Learn what the base rate means, how banks calculate it, its impact on loan interest, and how it compares with MCLR and EBLR benchmarks.\", \n\n  \"image\": \"https:\/\/www.fatakpay.com\/navbar-assest\/Logo-2.png\", \n\n  \"author\": { \n\n    \"@type\": \"Organization\", \n\n    \"name\": \"FatakPay\", \n\n    \"url\": \"https:\/\/www.fatakpay.com\" \n\n  }, \n\n  \"publisher\": { \n\n    \"@type\": \"Organization\", \n\n    \"name\": \"FatakPay\", \n\n    \"logo\": { \n\n      \"@type\": \"ImageObject\", \n\n      \"url\": \"https:\/\/www.fatakpay.com\/navbar-assest\/Logo-2.png\" \n\n    } \n\n  }, \n\n  \"datePublished\": \"2026-07-29\", \n\n  \"dateModified\": \"2026-07-29\" \n\n} \n\n<\/script> \n\n\n\n<script type=\"application\/ld+json\"> \n\n{ \n\n  \"@context\": \"https:\/\/schema.org\", \n\n  \"@type\": \"FAQPage\", \n\n  \"mainEntity\": [{ \n\n    \"@type\": \"Question\", \n\n    \"name\": \"Is base rate still used by banks today?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"It's largely been replaced by newer benchmarks, but some older loans that were originally linked to it may still be affected by its revisions.\" \n\n    } \n\n  },{ \n\n    \"@type\": \"Question\", \n\n    \"name\": \"Does base rate apply to NBFC personal loans?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"NBFCs typically use their own internal benchmark systems rather than the RBI's base rate framework, which primarily applied to banks, though a personal loan from an NBFC is priced using similar underlying principles.\" \n\n    } \n\n  },{ \n\n    \"@type\": \"Question\", \n\n    \"name\": \"What replaced the base rate system?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"MCLR replaced it in 2016, and EBLR has since become the standard for most new floating-rate retail loans from 2019 onward.\" \n\n    } \n\n  },{ \n\n    \"@type\": \"Question\", \n\n    \"name\": \"Can my old loan still be linked to base rate?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"Yes, if your loan was sanctioned before the newer systems came into effect and you haven't since switched benchmarks, it may still be linked to the base rate.\" \n\n    } \n\n  },{ \n\n    \"@type\": \"Question\", \n\n    \"name\": \"How often does the base rate change?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"Banks review and revise their base rate periodically based on changes in their cost of funds and other factors, though the frequency varies by lender.\" \n\n    } \n\n  },{ \n\n    \"@type\": \"Question\", \n\n    \"name\": \"What is the difference between base rate and repo rate?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"The repo rate is the rate the RBI charges banks, while the base rate was a bank-determined minimum lending rate historically influenced by, but distinct from, the repo rate.\" \n\n    } \n\n  }] \n\n} \n\n<\/script> \n","protected":false},"excerpt":{"rendered":"<p>If&nbsp;you&#8217;ve&nbsp;ever wondered why loan interest rates from different lenders vary, or why older loans&nbsp;seem to be&nbsp;priced differently from newer ones, the answer often traces back to a benchmark system that shaped Indian lending for years.&nbsp; What is the Base Rate?&nbsp; What is base rate? The base rate is the&nbsp;minimum&nbsp;interest rate a bank can lend at,<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[180],"tags":[],"class_list":["post-10257","post","type-post","status-publish","format-standard","category-personal-loan"],"_links":{"self":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/10257","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/comments?post=10257"}],"version-history":[{"count":1,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/10257\/revisions"}],"predecessor-version":[{"id":10258,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/10257\/revisions\/10258"}],"wp:attachment":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/media?parent=10257"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/categories?post=10257"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/tags?post=10257"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}