Introduction - Interest Rate/Base Rate
An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed. A financing cost is the measure of enthusiasm due per period, as an extent of the sum loaned, stored or obtained. The aggregate enthusiasm on a sum loaned or obtained relies upon the vital entirety, the financing cost, the intensifying recurrence, and the time frame over which it is loaned, kept or acquired.
It is characterized as the extent of a sum lent which a moneylender charges as enthusiasm to the borrower, typically communicated as a yearly percentage. It is the rate a bank or other loan specialist charges to acquire its cash, or the rate a bank pays its savers for keeping cash in a record. Yearly financing cost is the rate over a time of one year. Other loan costs apply over various periods, for example, a month or a day, yet they are normally annualized.
It is characterized as the extent of a sum lent which a moneylender charges as enthusiasm to the borrower, typically communicated as a yearly percentage. It is the rate a bank or other loan specialist charges to acquire its cash, or the rate a bank pays its savers for keeping cash in a record. Yearly financing cost is the rate over a time of one year. Other loan costs apply over various periods, for example, a month or a day, yet they are normally annualized.
Base Rate:
Base rate is the minimum rate set by the Reserve Bank below which banks are not allowed to lend to its customers.
Example: Base Rate of Standard Chartered Bank Nepal
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