A blended rate is a single composite interest rate that represents the weighted average of two or more different interest rates — applied to a borrowing, investment portfolio, or financial product that combines multiple rate tranches. In loan restructuring, a blended rate is calculated by combining a borrower's existing loan rates with a new refinancing rate — providing a single effective rate for the restructured debt. For example, a corporate borrower with ₹50 crore of loans at 9% and ₹50 crore of new refinancing at 7.5% would have a blended rate of 8.25% on the total ₹100 crore debt. In mutual fund portfolios, the blended yield is the weighted average yield of all fixed-income securities held in the portfolio — based on their market value weights. In the context of hybrid or multi-asset investment products in India, blended return represents the composite return of the equity and debt components combined based on their respective allocations and performance. Blended rates are widely used by Indian corporate treasurers, CFOs, and investment managers to simplify reporting and benchmarking of complex multi-rate financial positions — providing a single comparable metric for performance evaluation and stakeholder communication.
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