Despite banks making hectic efforts in enticing customers towards base rate; whether by lisitng the benefits of base rate or deterring them from BPLR by making home loans costlier, the efforts have gone down the drain. Currently, many banks had hiked their benchmark prime lending rates (BPLR) in a measure to force customers accept base rate.
But the step has failed to attract borrowers.
Arun Kaul, executive director(ED), Central Bank of India said, the aim of increase in BPLR was just to make borrowers accept base rate.
KR Kamath, chairman and MD, Punjab National Bank said, “Though we have hiked our PLR by a 75 basis points, borrowers don’t have to pay any extra if they decide to shift to the base rate system.”
He added, “Customers are yet to be aware of the advantages of the new system and it may take time to understand it.” . Kamath said, It is too early to see any trend among the customers’ behaviour.
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