BRAC Bank Base Rate Communication for Retail Loan [Home Loan, Auto Loan & Personal Loan]

Retail Loan [Home Loan, Auto Loan & Personal Loan] Pricing Methodology

Here, 

a) Base Rate (Variable): 

• The base rate will be the “Latest average of the highest 6-months’ FDR rate of all private commercial banks of Bangladesh except Islamic banks, foreign banks and 4th generation onward banks”, as published by Bangladesh Bank (BB). 
• This base rate will be variable and will be reviewed in every 6 (six) months for Home Loan. For Auto Loan & Personal Loan base rate will be reviewed in every 1 (one) year. Any changes in the base rate will be adjusted with the effective rate of the loan.
• Data source: https://www.bb.org.bd/en/index.php/financialactivity/interestdeposit

b) Margin Rate (Fixed): 

• The margin rate will be fixed for the entire loan tenure.
  
• Margin will be determined based on: 
• Risk assessment of the borrower
  
• Loan facility type
  
• Customer - bank relationship