|Public sector lender, Oriental Bank of Commerce has announced a cut in interest rates on advances made to agricultural sector and micro small and medium enterprise (MSME). The bank would be offering loans at 1.5-2.0% lower than existing rates.
Mr. SL Bansal,Chairman and MD of the bank also stated , the new rates would only be applicable upto a certain limit of credit availed. For MSME loans ranging from Rs. 1 crore to Rs. 50 crore, the interest charged would be 2% to 3% above the bank's base rate, which is 10.5%. currently the rates charged are 2.75% to 4% above the base rate.
The bank also reduced the rates on agri-loans to agri-food processing units like rice shelling, cotton ginning, loans against warehouses, and overdrafts to commission agents. Agri financing would be cheaer by 100 to 250 basis points.
The bank currently has a MSME loan book of Rs. 20,000 crore.