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The repo rate is a key monetary policy tool used by the Reserve Bank of India (RBI). It is the annualised interest rate charged by the central bank on amounts borrowed by commercial banks. The RBI used the repo rate to control inflation. On the other hand, the PLR (Prime Lending Rate) is the interest rate charged by banks on loans taken by their customers. Banks have the liberty to determine their PLR. It is important to find out the interest rate, as this determines the cost of the loan.