BPLR FUNDAS- Gourav Jain

When the BPLR is increased by the banks the discount given on the loan is also increased to attract the loan taker, but even when the BPLR goes down the discount offer remains. So it is best to take maximum discount on home loan when the BPLR is high.
e.g. if a loan is taken at BPLR 14 with the discount of 3.5% effective interest rate will be 10.5. Now if the BPLR goes down to 11 the effective interest rate will be 7.5%.
But if the loan is taken at the low BPLR the banks offer less discount.
e.g. if someone has taken load 4 year back when the BPLR was 8% after discount of 1% the effective interest rate will be 7 but when the BPLR is increased 14% they have to pay 13% interest.