{"id":11883,"date":"2026-08-03T16:26:29","date_gmt":"2026-08-03T10:56:29","guid":{"rendered":"https:\/\/www.fatakpay.com\/blog\/?p=11883"},"modified":"2026-08-20T18:51:23","modified_gmt":"2026-08-20T13:21:23","slug":"what-is-prime-lending-rate","status":"publish","type":"post","link":"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-prime-lending-rate\/","title":{"rendered":"What Is Prime Lending Rate (PLR)? Full Form and Meaning\u00a0"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Every borrower eventually runs into an unfamiliar acronym on a loan document, and PLR is one of the more common ones.\u00a0Here&#8217;s\u00a0what it stands for, how it works, and why it still shows up in lending conversations even though most loans today are priced differently. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Understanding PLR can help you make sense of older loan agreements and compare them with modern benchmark-linked loans. It also gives you a clearer picture of how lending rates have evolved over time and what that means for borrowers today.\u00a0<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_86 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-prime-lending-rate\/#PLR_Full_Form\" >PLR Full Form&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-prime-lending-rate\/#Prime_Lending_Rate_Meaning\" >Prime Lending Rate Meaning&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-prime-lending-rate\/#How_Is_Prime_Lending_Rate_Calculated\" >How Is Prime Lending 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-prime-lending-rate\/#PLR_vs_MCLR_vs_Repo-Linked_Rate\" >PLR vs MCLR vs Repo-Linked Rate&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-prime-lending-rate\/#Why_Prime_Lending_Rate_Matters_for_Borrowers\" >Why Prime Lending Rate Matters for Borrowers&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-prime-lending-rate\/#Which_Loans_Are_Not_Affected_by_Prime_Lending_Rate_Changes\" >Which Loans Are Not Affected by Prime Lending Rate Changes?&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-prime-lending-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-prime-lending-rate\/#FAQs_on_Prime_Lending_Rate\" >FAQs on Prime Lending 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-prime-lending-rate\/#What_is_the_full_form_of_PLR\" >What is the full form of PLR?&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-prime-lending-rate\/#How_is_prime_lending_rate_different_from_repo_rate\" >How is prime lending rate different from repo rate?&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-prime-lending-rate\/#Does_a_PLR_change_affect_my_existing_personal_loan\" >Does a PLR change affect my existing personal loan?&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-prime-lending-rate\/#Who_decides_the_prime_lending_rate\" >Who decides the prime lending 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-prime-lending-rate\/#Is_PLR_still_used_by_banks_in_India\" >Is PLR still used by banks in India?&nbsp;&nbsp;<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"PLR_Full_Form\"><\/span>PLR Full Form&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">PLR stands for Prime Lending Rate, the benchmark interest rate a bank or NBFC charges its most creditworthy borrowers. Other loan rates are then priced above this benchmark, depending on the borrower&#8217;s risk profile, so understanding the full form of PLR is the first step to understanding how legacy loan pricing worked.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Prime_Lending_Rate_Meaning\"><\/span>Prime Lending Rate Meaning&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Simply put, the prime lending rate meaning comes down to this: it is the reference rate against which a lender used to price most of its lending products. A borrower with a strong credit history might get a rate close to the prime lending rate itself, while a riskier borrower would be charged prime lending rate plus a spread. This system made it a central, published number that lenders revised periodically based on their own cost of funds.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Is_Prime_Lending_Rate_Calculated\"><\/span>How Is Prime Lending Rate Calculated?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Unlike benchmark-linked lending rates that follow external reference rates, the Prime Lending Rate (PLR) is&nbsp;determined&nbsp;internally by each lender. It is based on the lender&#8217;s own cost structure and pricing strategy.&nbsp;Here&#8217;s&nbsp;how the calculation typically works:&nbsp;<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>The lender assesses its cost of funds<\/strong>\u00a0i.e.\u00a0deposits, borrowings, and other sources of capital.\u00a0<\/li>\n<\/ol>\n\n\n\n<ol start=\"2\" class=\"wp-block-list\">\n<li><strong>A margin is added<\/strong>\u00a0to cover operating costs and a reasonable profit for the lender.\u00a0<\/li>\n<\/ol>\n\n\n\n<ol start=\"3\" class=\"wp-block-list\">\n<li><strong>The resulting figure becomes the prime lending rate<\/strong>, published and reviewed periodically by the bank or NBFC.\u00a0<\/li>\n<\/ol>\n\n\n\n<ol start=\"4\" class=\"wp-block-list\">\n<li><strong>Individual loan rates are then set<\/strong>\u00a0as the prime lending rate plus a spread that reflects the specific borrower&#8217;s or product&#8217;s credit risk.\u00a0<\/li>\n<\/ol>\n\n\n\n<ol start=\"5\" class=\"wp-block-list\">\n<li><strong>When the lender&#8217;s cost of funds changes<\/strong>, the prime lending rate is revised, and any loan still linked to it moves accordingly.\u00a0\u00a0<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"PLR_vs_MCLR_vs_Repo-Linked_Rate\"><\/span>PLR vs MCLR vs Repo-Linked Rate&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Basis<\/strong>&nbsp;<\/td><td><strong>PLR<\/strong>&nbsp;<\/td><td><strong>MCLR<\/strong>&nbsp;<\/td><td><strong>Repo-Linked Rate (RLLR)<\/strong>&nbsp;<\/td><\/tr><tr><td>Basis of calculation&nbsp;<\/td><td>Cost of funds plus margin, lender&#8217;s discretion&nbsp;<\/td><td>Marginal cost of funds, RBI-prescribed method&nbsp;<\/td><td>Directly linked&nbsp;to RBI&#8217;s repo rate&nbsp;<\/td><\/tr><tr><td>Transparency&nbsp;<\/td><td>Lower,&nbsp;largely at&nbsp;lender&#8217;s discretion&nbsp;<\/td><td>Moderate, formula-based but still lender-influenced&nbsp;<\/td><td>High, moves in step with a public policy rate&nbsp;<\/td><\/tr><tr><td>Era of use&nbsp;<\/td><td>Older system,&nbsp;largely phased&nbsp;out for retail loans&nbsp;<\/td><td>Introduced 2016, still used for some loans&nbsp;<\/td><td>Mandatory for most retail floating-rate loans since 2019&nbsp;<\/td><\/tr><tr><td>Borrower impact&nbsp;<\/td><td>Rate changes were less frequent and less transparent&nbsp;<\/td><td>Rate changes tied to a formula reviewed periodically&nbsp;<\/td><td>Rate changes track RBI&#8217;s repo rate moves directly&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">While PLR is no longer the benchmark for most new retail loans, you may still come across it in older loan agreements or legacy banking documents. Understanding the differences between these lending rates helps you better evaluate loan terms,&nbsp;anticipate&nbsp;interest rate changes, and make more informed borrowing decisions.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Prime_Lending_Rate_Matters_for_Borrowers\"><\/span>Why Prime Lending Rate Matters for Borrowers&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Although the Prime Lending Rate is no longer the standard benchmark for most new retail loans, it continues to influence many existing loan accounts and lending discussions. Understanding its role can help you interpret loan pricing more confidently and make better borrowing decisions.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Older loans still referencing the prime lending rate may reset less predictably than newer repo-linked loans\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Understanding the prime lending rate helps you make sense of why two lenders quote different rates for similar borrowers\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It explains one of several\u00a0<strong><a href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/factors-affecting-personal-loan-interest-rate\/\">factors affecting personal loan interest rate<\/a><\/strong>\u00a0decisions, alongside credit score and income\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Comparing a lender&#8217;s prime lending rate history can hint at how\u00a0frequently\u00a0it revises pricing overall\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Which_Loans_Are_Not_Affected_by_Prime_Lending_Rate_Changes\"><\/span>Which Loans Are Not Affected by Prime Lending Rate Changes?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Broadly, loans not affected by prime lending rate movements fall into three categories:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fixed-rate personal loans, where the rate is locked at disbursal regardless of any benchmark movement\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Loans already switched to a repo-linked benchmark, which follow RBI&#8217;s repo rate instead\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Loans nearing the end of their tenure, where a rate reset has limited practical impact on remaining EMIs\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It helps to understand the difference through a\u00a0<strong><a href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/fixed-vs-floating-interest-rate\/\">fixed vs floating interest rate<\/a><\/strong>\u00a0comparison before assuming any of your loans move with this benchmark\u00a0<\/li>\n<\/ul>\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 prime lending rate&nbsp;isn&#8217;t&nbsp;the dominant benchmark it once was, but it still surfaces in older loan agreements and in comparisons with newer, more transparent benchmarks like MCLR and the repo-linked rate. Knowing what&nbsp;is the prime lending rate&nbsp;and how to calculate the prime rate&nbsp;roughly helps&nbsp;you read any older loan document with more confidence.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs_on_Prime_Lending_Rate\"><\/span>FAQs on Prime Lending 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=\"What_is_the_full_form_of_PLR\"><\/span>What is the full form of PLR?&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">PLR stands for Prime Lending Rate, the benchmark&nbsp;rate&nbsp;a lender uses as a starting point before adding a risk-based spread for individual borrowers.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_is_prime_lending_rate_different_from_repo_rate\"><\/span>How is prime lending rate different from 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 set by the RBI as a monetary policy tool, while the prime lending rate is set independently by each bank or NBFC, though&nbsp;it&#8217;s&nbsp;often influenced by repo rate movements indirectly.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Does_a_PLR_change_affect_my_existing_personal_loan\"><\/span>Does a PLR change affect my existing personal loan?&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">It depends on your loan structure. If your\u00a0<a href=\"https:\/\/www.fatakpay.com\/personal-loan\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>personal loan<\/strong><\/a>\u00a0is still linked to the prime lending rate, a change can affect your EMI; if\u00a0it&#8217;s\u00a0fixed-rate or repo-linked, PLR movements\u00a0won&#8217;t\u00a0apply to it.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_decides_the_prime_lending_rate\"><\/span>Who decides the prime lending rate?&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Each bank or NBFC decides its own prime lending rate, based on its cost of funds and internal policies, unlike the repo rate, which the RBI sets centrally.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_PLR_still_used_by_banks_in_India\"><\/span>Is PLR still used by banks in India?&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Its use has declined sharply since the introduction of MCLR and later the repo-linked rate, though some older loans and a related\u00a0<a href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-base-rate\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>base rate<\/strong><\/a>\u00a0framework still reference it for legacy pricing.\u00a0<\/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\": \"What Is Prime Lending Rate (PLR)? Full Form and Meaning\", \n\n    \"item\": \"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-prime-lending-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-prime-lending-rate\/\" \n\n  }, \n\n  \"headline\": \"What Is Prime Lending Rate (PLR)? Full Form & Meaning\", \n\n  \"description\": \"Learn what the prime lending rate (PLR) is, its full form and meaning, how it's calculated, and how it compares with MCLR and repo-linked rates for borrowers.\", \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\": \"2026-08-03\", \n\n  \"dateModified\": \"2026-08-03\" \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  { \n\n    \"@type\": \"Question\", \n\n    \"name\": \"What is the full form of PLR?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"PLR stands for Prime Lending Rate, the benchmark rate a lender uses as a starting point before adding a risk-based spread for individual borrowers.\" \n\n    } \n\n  }, \n\n  { \n\n    \"@type\": \"Question\", \n\n    \"name\": \"How is prime lending rate different from repo rate?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"The repo rate is set by the RBI as a monetary policy tool, while the prime lending rate is set independently by each bank or NBFC, though it's often influenced by repo rate movements indirectly.\" \n\n    } \n\n  }, \n\n  { \n\n    \"@type\": \"Question\", \n\n    \"name\": \"Does a PLR change affect my existing personal loan?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"It depends on your loan structure. If your personal loan is still linked to the prime lending rate, a change can affect your EMI; if it's fixed-rate or repo-linked, PLR movements won't apply to it.\" \n\n    } \n\n  }, \n\n  { \n\n    \"@type\": \"Question\", \n\n    \"name\": \"Who decides the prime lending rate?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"Each bank or NBFC decides its own prime lending rate, based on its cost of funds and internal policies, unlike the repo rate, which the RBI sets centrally.\" \n\n    } \n\n  }, \n\n  { \n\n    \"@type\": \"Question\", \n\n    \"name\": \"Is PLR still used by banks in India?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"Its use has declined sharply since the introduction of MCLR and later the repo-linked rate, though some older loans and a related base rate framework still reference it for legacy pricing.\" \n\n    } \n\n  } \n\n  ] \n\n} \n\n<\/script> \n","protected":false},"excerpt":{"rendered":"<p>Every borrower eventually runs into an unfamiliar acronym on a loan document, and PLR is one of the more common ones.\u00a0Here&#8217;s\u00a0what it stands for, how it works, and why it still shows up in lending conversations even though most loans today are priced differently. Understanding PLR can help you make sense of older loan agreements<\/p>\n","protected":false},"author":1,"featured_media":12248,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[180],"tags":[],"class_list":["post-11883","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-loan"],"_links":{"self":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/11883","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=11883"}],"version-history":[{"count":1,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/11883\/revisions"}],"predecessor-version":[{"id":11884,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/11883\/revisions\/11884"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/media\/12248"}],"wp:attachment":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/media?parent=11883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/categories?post=11883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/tags?post=11883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}