The interest rate on advance levied by banks comprises the BPLR, Base rate, MCLR rate, or external benchmarks like Repo-linked lending of the respective bank, and the ‘Spread’ over the cost of lending is decided by the bank’s Board. The determination of ‘Spread’  varies on each category of advance depending upon the tenure of the … Continue reading How do banks determine ‘Spread’ in respect of interest on advances?