Interest Rate Structure Revision

We are happy to inform you, that from 1st February 2007, we have introduced Tenure-based Reference Rates, to which will be linked all the loans sanctioned and/or disbursed after 1st February 2007. As you are aware, the volatility in interest rates varies depending on the tenure of funds and the same will be better reflected in the new system. With this new system, we will also do away with the practice of Sub-PLR rates.

We take this opportunity to inform you, our Tenure-based Reference Rates:

Loan Tenure Tenure-based Reference Rate Rate (% p.a.)
1 year and above but less than 3 years MT Reference Rate 10.75
Between 3 to 5 years LT Reference Rate 11.00
Above 5 years VLT Reference Rate 11.50

We hope you will welcome these changes and help us to improve our services further towards the growth and prosperity of your business.

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