Prime Lending Rates

Prime lending rate (PLR) refer to the interest rates charged by commercial banks for the benefit of its customers solvents. The rates of subprime loans can also be described as the fees paid by the leading banks for funds.

Several main refinancing rate loans include short-term rates first, long-term lending rates to prime, home equity, fixed rate, floating rate, home equity, etc. Each bank, building society or specialist loan company to set their first loan rates. Prime lending rates also change to different credit products. Almost all the banks' lending rates first change every 3 months or 6 months.

Some credit card issuers use preferential rates to calculate interest. Prime rate is an economic indicator used by credit companies to determine the interest rate on its variable rate credit card. Changes in fixed-rate mortgage do not affect the prime rate. Interest rates are indirectly related to the prime rate (PLR).

The first time borrowers are provided loans at preferential interest current discount rate of long-term loans and therefore most of the former are offered below the PLR.

Increase the value of bonds will also increase the number of loans. Sometimes, banks increase the lending rates of work, where the cost of obtaining additional funds. Sometimes banks offer rates below the current prime rate to attract new customers.

Prime lending rates influence the prices of federal funds. Prices range from the availability of funds for banks and credit demand in the market.