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What is the bank rate?

Conversations and Morning Walks

1977 Conversations and Morning Walks

Bank rate is not less than 16%.
Room Conversation -- January 10, 1977, Bombay:

Gopāla Kṛṣṇa: We're dealing with all the paper mills directly.

Rāmeśvara: You take good savings that way.

Gopāla Kṛṣṇa: Yes. And also the printer likes it because it doesn't enter his account.

Rāmeśvara: Printer loves it. The printer doesn't have to spend his money on paper.

Prabhupāda: Not only that, if he makes bill for the paper, then he has to pay sales tax.

Gopāla Kṛṣṇa: Yes. Also the income tax will say, "Your sales were so high," so he doesn't want the paper account to come under that. So what I'm saying, Śrīla Prabhupāda... The demand for our books is there. And like BBT Los Angeles sells a Bhāgavatam to the temples for $3.50, and we are selling it for $1.45. And that includes our profit already. Our real cost is 90 cents, 95 cents. So we can expand our printing capacity here. As I discussed with you last week, there's one machine from England that Usa Printers wants to import. And if we give him a loan... It will be his machine. He'll give us documents, and he'll pay back interest every month. In two years he'll pay back the whole money plus interest, which will be higher than what the bank gives us.

Prabhupāda: Is that all right?

Rāmeśvara: What is the bank rate?

Gopāla Kṛṣṇa: The bank rate's about 12%. We'll do higher than the bank rate.

Prabhupāda: No, no, no.

Gopāla Kṛṣṇa: No.

Prabhupāda: Bank rate is not less than 16%.

Rāmeśvara: He is only offering 12% a year.

Gopāla Kṛṣṇa: No, he'll give us more than the bank rate. Whatever rate the bank lends at, we'll get more than that. That's understood.

Prabhupāda: He may mean... "More than bank rate" means bank allows to their customer not more than 10%. But if you take loan from bank...

Gopāla Kṛṣṇa: Yes. I know he will give more. That loan...

Prabhupāda: Take loan... The interest is...

Gopāla Kṛṣṇa: Yes, the borrowing loan. He will give more than that.

Prabhupāda: The borrowing loan is not less than 16%.

Gopāla Kṛṣṇa: 15%... Yes. He'll offer 25%.

Rāmeśvara: I think this is a good idea because the printer will be indebted to us.

Gopāla Kṛṣṇa: And now we also need his help to make... I went all over India looking for printers.

Prabhupāda: So do it immediately.

Rāmeśvara: This is a good opportunity for us to have a very solid relationship with the printer.

Prabhupāda: Hm. That's nice.

Page Title:What is the bank rate?
Compiler:Marc, Rishab
Created:31 of Aug, 2011
Totals by Section:BG=0, SB=0, CC=0, OB=0, Lec=0, Con=1, Let=0
No. of Quotes:1