Last day Union bank of India unveiled that bank will slash down the rates for loans to MSME segment. In order to enhance the credit growth bank has planned to do so. Bank will reduce the rate ranging from 200 bps to 375 bps.
Currently the base rate of the bank - at which the bank lends to the other banks, is 10.25%. The new rates will be applicable from 3rd November, 2014. The bank also reported that MSME (Micro, Small & Medium Enterprise) is a potential sector the economy which needs to boost. Further the bank also informed that the revised interest rate for investment grade borrowers is in the range of 12.25% to 13.75%.