Commercial Loan Rate
Short definition
The commercial loan rate is the cash-loan price the bank charges the firm. It is policy plus funding, capital, risk and competition — not a one-for-one copy of the CBRT decision.
Detailed explanation
The CBRT’s published average commercial loan rate is not your spread. Collateral, tenor, sector and coverage move the price.
When credit conditions are tight the rate can look “fine” with no line. All-in still includes fees and compensating balances.
Why it matters for the CFO
Budget Kd and debt capacity are born from this price. The gap to policy is the corporate face of transmission.
How to read it
A tighter gap is competition or lower risk; a wider gap is funding or tighter standards. There is no universal “fair gap”.
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What to learn next
Definitions are educational. They are not investment, credit or tax advice.