The Kolkata headquartered United Bank of India has reduced interest rates on select loans by up to 275 basis points ( bps). It should be noted that a rate cut of 100 bps leads to a reduction of 1 percent in interest rates.
The bank issued a press statement to this effect according to which the public sector lender has brought down the interest rates on small and medium term loans of more than Rs. 1 crore by 75 to 275 bps. The new interest rates have become applicable from September 10, 2012.
Earlier, the bank had slashed the interest rates on loans less than Rs. 1 crore by 50 to 400 bps, which became applicable from August 15.
In addition to this, the bank is providing the concessional rate it extends to rice mills to all other agricultural based processing units like flour mills, mills for pulses, oil mills etc by bringing down its spread by 150 to 175 bps.