BUSINESS STANDARD 12TH NOVEMBER 2003

SBI REDUCES SSI LOAN RATES BY 75-100 BPS

State Bank of India (SBI) has slashed interest rates on advances to small scale industries (SSIs) and small businesses by 75 basis points to 100 basis points. The bank also reduced interest rates on agricultural terms loans by 25 to 50 basis points.

The new interest rates are effective from November 1, 2003. SBI has a huge agriculture and SSI loan portfolio of Rs. 15,000 crore and Rs. 12,000 crore, respectively.

In the case of short-term loans to the SSIs and small businesses, which are payable up to one year, the new rates are: above Rs. 25,000 and up to Rs. 50,000: 8.75 per cent (9.75 per cent earlier) and those above Rs. Two and up to Rs. Five lakh: 10.50 per cent (11.25 per cent). Interest rates remain unchanged in the case of loans up to Rs. 25,000 (8.75 per cent) and those above Rs. 50,000 and up to Rs. Two lakh (9.75 percent).

In the case of short-term loans to the SSIs and small businesses, which are repayable over one year, the new rates are: above Rs. 25,000 and up to Rs. 50,000: 9.25 per cent (10.25 per cent earlier) and those above Rs. Two lakh and upto Rs. 5 lakh: 11 per cent (12 per cent).

Interest rates remain unchanged in the case of loans up to Rs. 25,000 (9.25 per cent) and those above Rs. 50,000 and up to Rs two lakh (10.25 per cent).

 




STATE BANK OF INDIA
REVISION IN INTEREST RATES ON PRIORITY SECTOR ADVANCES
(w.e.f. 1st NOVEMBER 2003)



SMALL SCALE INDUSTRIES AND SMALL BUSINESS

  1. CASH CREDIT


    2. Sl. No.

    Size of the Credit Limit

    Existing Interest Rate

    Revised Interest Rate

    i)

    Upto Rs. 25,000/-

    8.75% p.a.
    (1.75% below SBAR)

    No Change

    ii)

    Above Rs. 25,000/-
    Upto Rs. 50,000/-

    9.75% p.a.
    (0.75% below SBAR)

    8.75% p.a.
    (1.75% below SBAR)

    iii)

    Above Rs. 50,000/-
    and upto Rs. 2 lacs

    9.75% p.a
    (0.75% below SBAR)

    No Change

    iv)

    Above Rs. 2 lacs and
    upto Rs. 5 lacs

    11.25% p.a.
    (0.75% below SBAR)

    10.50% p.a
    (SBAR)


  2. TERM LOANS


    3. Sl. No.

    Size of the Credit Limit

    Existing Interest Rate

    Revised Interest Rate

    i)

    Upto Rs. 25,000/-

    9.25% p.a.
    (1.75% below SBMTLR)

    No Change

    ii)

    Above Rs. 25,000/-
    Upto Rs. 50,000/-

    10.25% p.a
    (0.75% below SBMTLR)

    9.25% p.a.
    (1.75% below SBMTLR)

    iii)

    Above Rs. 50,000/-
    and upto Rs. 2 lacs

    10.25% p.a
    (0.75% below SBMTLR)

    No Change

    iv)

    Above Rs. 2 lacs and
    upto Rs. 5 lacs

    12.00% p.a.
    (1% above SBMTLR)

    11% p.a
    (SBMTLR)