Question

Rate of interest of banks comparing Nationalized bank and Private bank

Answer 1

Answer:

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Explanation:

First of all let us see what the core difference between public sector bank and a private sector banks is. Public sector banks are those which are operated by govt. bodies and the employees get salaries from the government funds.

Private sector banks are the banks which are controlled by the private lenders with the approval from the RBI their interest rates are slightly higher as compared to Public sector banks.

Nationalized banks are different from private banks because of its lower cost of funds, bigger customer base and customer trust. They are also widely believed to be safer and secure. All these factors are reflected on the interest rates of loan also. Generally the public sector banks have lesser interest rates.