IOB Cuts Rates For MSME Borrowers

PSU lender Indian Overseas Bank (IOB) has reduced interest rates in the range of 15 basis points to 90 basis points across different categories of MSME borrowers.

The bank has also reduced the commission on opening of Letters of Credit and bank guarantees, according to a statement.

For loans ranging from ₹25 lakh to ₹2 crore, the interest rate stands reduced by 50 basis points. For loans above ₹2 crore, the rate-cut is by 15 basis points to 90 basis points, depending on the rating of the MSME unit. These reductions are efifective April 1.

FD rates up

IOB has also announced a hike in the interest rates on fixed deposits (FDs) across various tenures by 10-80 basis points (bps) effective April 5.

Deposits off up to ₹1 crore for tenures ranging from one week to five years and above will now earn between 4.5 per cent and 6.8 per cent.

Senior citizens will continue to get the 0.50 per cent. The interest rate for IOB tax saver deposit stands at 6.8 per cent.

There has been no revision on the interest rates for NRE deposits.