People’s Bank slashes interest rates to uplift entrepreneurs
People’s Bank has taken steps to immediately reduce the interest rates of loans for COVID-19- affected industries.
These include agriculture, animal husbandry, related industries, other crops and fisheries fields as well as manufacturing, tourist hotels, exports, development and microfinance and cooperative divisions, according to a media release issued by the bank.
Accordingly, in terms of agriculture, animal husbandry, related industries, other crops and fisheries fields, the 13% interest rate applicable for loans of up to Rs.1 million (up to 3 years) has been reduced to 9.50% and if more than 3 years to 9.75%, while the current 14% interest rate for loans over Rs.1 million has been reduced to 13.50%. In the manufacturing industry, the 13.50% interest applicable to loans of up to Rs. 1 million (up to 3 years) has dropped to 9.50% while the interest rate for loans above 3 years has dropped to 9.75%.
In the hotels and tourism sector, the
14.5% interest rate applicable for loans of up to Rs.1 million was reduced to
9.50% (up to 3 years) and
9.75% (more than 3 years) whereas the
16.75% interest rate applicable for loans of more than Rs.1 million was reduced to
14.50% (up to 3 years) and
16.25% (more than 3 years).
In terms of export remittances, the interest rates of 12.5% for up to Rs.1 million for Trust credit receipts, short term loans, pledge loans and packing credit loans was reduced to 9.50% while the interest rate for over Rs.1 million was reduced to 12%.
In the development and micro finance field, the interest rate for micro enterprise loans of a maximum of up to Rs.250,000 dropped from 13.5% to 9.50%, interest rates for small enterprise loans of up to Rs. 1 million dropped from 13.50% to 12.75% and interest rates for medium enterprise loans of up to Rs. 20 million was reduced from 13.50% to 13%.
In terms of export remittances, the interest rates of 12.5% for up to Rs.1 million for Trust credit receipts, short term loans, pledge loans and packing credit loans was reduced to 9.50% while the interest rate for over Rs.1 million was reduced to 12%.