How RBI's New Base Rate Works For Loan(lending rate)

Have you seen huge difference in loan interest rate between new customers and existing customers.Existing customers pays loan at very high interest rate. 

This is happening because of old BPLR system which failed to bring transparency in lending rates charged by banks.



So,  RBI has recommended Base Rate for lending rate  which will replace BPLR system from 1st JULY 2010.This will be no