Base rate - The lowest rate at which a bank will charge interest.Banks usually charge at a stipulated figure "above base rate", and the figure will depend on all sorts of circumstances to do with the loan and the borrower.If the base rate rises, then usually the rate of interest charged on the loan will rise as well to preserve the differential. If it falls, so will the rate on the loan. Thus, a loan at "4% above base rate" will be 10% if the base rate is 6%, and will rise to 11% of the base rate rises to 7%.
Base rate : the lowest rate at which a bank will charge interest.banks usually charge at a stipulated figure "above base rate", and the figure will depend on all sorts of circumstances to do with the loan and the borrower.if the base rate rises, then usually the rate of interest charged on the loan will rise as well to preserve the differential. if it falls, so will the rate on the loan. thus, a loan at "4% above base rate" will be 10% if the base rate is 6%, and will rise to 11% of the base rate rises to 7%.
Base rate