Bank fees from BPLR to Base Rate

POSTED BY Gopal sahu ON January 29, 2013 3:41 pm COMMENTS (3)


Could u please explain me why the banks are asking for a conversion fee for converting from BPLR to Base rate system in case of Home Loans.

As per my knowledge RBI has instructed the banks to do it free of cost.

As well my bank UCO bank has introduced this conversion from last 2 months only. Where as i think from July 2010 RBI has introduced this.

Can u file a case in this regard against the banks..


Thanks and Regards




3 replies on this article “Bank fees from BPLR to Base Rate”

  1. Dear Gopal, yes is the answer. To get 10.5% you w’d have to pay .



  2. Dear Gopal, the conversion from PLR to base rate is free. There is a possibility for your case that you want the current ROI in your home loan for which your bank is demanding a conversion fee. If my assumption is right, yes you w’d have to pay the fee for lowering down your ROI. For merely a conversion, there is no fee.



    1. Gopal sahu says:

      Dear Ashal,

      Thanks for your insight. Well the base rate system is lower i.e. 10.5 where as PLR is currently 11.75 in my case.

      So, in your view the conversion fee what they are asking is justified.


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