Bank of Baroda on Monday cut its interest rates for loans upto Rs 50,000 for agriculture, SSI and other priority sectors.
For agriculture loans, the interest rates have been reduced to 8.5 per cent, two per cent below the benchmark prime lending rate.
The interest rate on all direct agriculture loans to farmers above Rs 50,000 and Rs 10 lakh (Rs 1 million) has been reduced to 9.25 per cent, the bank said in a release in Mumbai.
Interest rates on loans above Rs 50,000 to Rs 200,000 to SSI, tiny sector and small borrowers was lowered to nine per cent for one year maturity and 9.25 per cent for over one year, the release added.
All new SSI units as well as other priority sector borrowers and existing borrowers with "A" credit rating and above in this category will have the interest rate benefit of 0.25 to 0.75 per cent below BPLR.
The maximum interest rate spread over BPLR in respect of SSI and other priority sector advances is reduced to one per cent, the bank said.
P S Shenoy, chairman and managing director, BoB, said with the downward revision in interest rates, farmers can now avail loans at most competitive rates from the bank.
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