Since the base rate will be the minimum rate for all loans, the current stipulation of BPLR as the ceiling rate for loans up to Rs.200,000 is withdrawn.
It is expected that this will increase the credit flow to small borrowers at reasonable rates and direct bank finance will  26  BIS Review 82/2010  provide effective competition to other forms of high cost credit. The interest rate on rupee export credit has also been deregulated. 10.