SBI reduces SSI loan rates by 75-100 bps

 The new interest rates are effective from November 1,2003. SBI has a huge agriculture and SSI loan portfolio of Rs 15,000 crore and Rs 12,000 crore, respectively.

 In the case of short-term loans to the SSIs and small businesses, which are payable up to one year, the new rates are : above Rs 25,000 and up to Rs 50,000 : 8.75 per cent (9.75 per cent earlier) and those above Rs two lakh and up to Rs five lakh : 10.50 per cent (11.25 per cent).

 Interest rates remain unchanged in the case of loans up to Rs 25,000 (8.75 per cent) and those above Rs 50,000 and up to Rs two lakh (9.75 per cent).

 In the case of short-term loans to the SSIs and small businesses, which are repayable over one year, the new rates are : above Rs 25,000 and up to Rs 50,000 : 9.25 per cent (10.25 per cent earlier) and those above Rs two lakh and up to Rs 5 lakh: 11 per cent (12 per cent).

 Interest rates remain unchanged in the case of loans up to Rs 25,000 (9.25 per cent) and those above Rs 50,000 and up to Rs two lakh (10.25 per cent).

 Agricultural term loans above Rs 50,000 and up to Rs two lakh are now available at 10 per cent (10.25 per cent earlier) and those above two lakh and up to Rs five lakh are obtainable at 10.50 per cent (11 per cent).

 According to a senior SBI official the bank the bank was looking at giving a major thrust to the priority sector lending.

 It will be circumspect on cutting interest rates on home loans, which falls under priority sector lending category.