Mumbai Interbank Bid Rate<\/u><\/a> (MIBID) is the interest rate that one participating bank pays to another bank to attract the deposit of funds in the Indian interbank market.\u00a0<\/p>The MIBID rates the weighted average of all interest the participating banks offer on deposits on a particular day.<\/p>
MIBOR is the acronym for Mumbai Interbank Offering Rate, the yardstick of the Indian money market.\u00a0<\/p>
In the interbank market, it is the rate at which banks borrow unsecured funds from one another.<\/p>
The MIBOR is higher than MIBID rates because – after taking loans the banks will try to pay less interest and while offering loans they will try to get more interest.\u00a0<\/p>
The MIBID and MIBOR together add up to a bid-offer spread for Indian overnight lending rates.<\/p>
MIBOR is the interest rate that the lender would like to charge while lending or giving loans while MIBID is the interest rate that the borrower is willing to pay.\u00a0<\/p>
The offer and bid are both part of loan obtaining activities. MIBOR is the interest rate that a bank is willing to charge from a borrower in the Mumbai interbank money market which is spread across India.<\/p>
MIBOR – lender offer at this rate.\u00a0 The lender wants a higher rate and with<\/p>
MIBID Borrower bid at this rate. The borrower wants the loans at a lower rate.<\/p>
As Everybody would like the money to generate interest they would like to generate interest due to which banks want to lend the money.\u00a0<\/p>
Depending on the bank\u2019s credit rating the borrowing rates vary. Hence banks with good credit ratings borrow at lower interest rates and lend to other banks at higher rates and make money from the difference.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t