Question

A commercial bank calculates the final interest rate for a corporate MSME borrower using the EBLR formula. Given the following parameters: Repo Rate (External Base Rate): 6.50% Credit Risk Spread: 1.20% Liquidity / Tenor Spread: 0.30% Profit Margin: 0.50% What is the final Risk-Based Interest Rate applicable to the borrower?

A 7.70%
B 8.00%
C 8.50%
D 8.80%
E 9.00%
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