what is a BLR?

Question

i really want to know what is BLR as the word always appear in banks. plaese use general terms as i don't have a finance background,, thank you!!

Answer 1

It stands for Bank Lending Rate. Banks lend money in various forms, e.g. an overdraft account facility, a mortgage loan, renovations loan, etc. Each type of loan has its own lending rate. If you see it on your current account bank statement, it usually means the prime lending rate for overdrafts, i.e. the rate at which it lends to its best customers. Most people pay about 2% above prime.