Mumbai, November 2014: Union Bank of India on Wednesday announced a 2-to-3.75-percentage point reduction in interest rates on advances to medium enterprises to boost credit growth.
“The revised interest rate for investment grade borrowers is in the range of 12.25 per cent to 13.75 per cent,” the bank said in a statement.
The new rates will be effective from November 3.
Union Bank’s base rate is at 10.25 per cent at present.
The bank classifies medium enterprises as into two classes: manufacturing enterprises engaged in the manufacture of goods with investment in core plant and machinery between Rs. 5 crore and Rs. 10 crore; and service enterprises engaged in rendering services with investment in core equipment of more thanRs. 2 crore and up to Rs. 5 crore.
Business Line
