Interest You Should Know
If you want to have your own house by get loan from bank, thing which you should know is interest rate for housing or lending interest rate that will be with you until you have completed pay installment. Lending interest rate is the floating rate interest which banks will charge to customers.
MLR (Minimum Loan Rate) means interest rate which bank charge to the first-class major customers, loan type has a period such as have a good financial history, have the enough collateral. Most are the long term loans that have term to repay definitely such as business loans MRR (Minimum Retail Rate) means interest rate which banks charge to the first-class minor customers such as personal loans, housing loans, and credit card loans. In other word, it is paying interest indefinitely and doesn’t have a fixed term to repay until the capital is out such as personal loans, housing loans. If you look in long term, MRR will flexible to repay the capital. Borrowers can pay interest according to their ability but cannot fix the definite time that when the capital will be cleared. For banks, MLR will has lower risk because it has definite time that when banks will get all repayment. It means the guarantee that banks will get all of the repayment of capital and interest is profit. So, it make banks charge MLR less than MRR always to persuade borrower to choose this repay program. Each bank charges the interest rate unequally because each bank has different capital and considers approving loan from different factor. Moreover, you should consider fluctuation of earlier interest rate. So, you should choose the bank that has a low level of fluctuation rate and compare condition and interest rate from varied banks.Discussion
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