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QC V •.. fOf F E D E R A L R E S E R V E s t a t i s t i c a l r e l e a s e For i m m e d i a t e r e l e a s e A p r i l . 1 7 , 1975 G.^LO INTEREST RATES CHARGED ON SELECTED TYPES OF BANK LOANS Type of Loan : • ; I n t e r e s t r a t e ( p e r c e n t p e r annum) January January February 6 1972 1975 1975 Small s h o r t - t e r m n o n i n s t a l m e n t l o a n s t o b u s i n e s s e s jL/ .1 7.31 11.27r 10.78 10.28 7.55 10.62 10.l5r 9.92 7.63 10.29r» ; 10.18r 10.26 10.94 12.57 11.61r 11,$6 13>28 11.51 12.14 13.20 11.46 11/66 13.07 12.74 17.11 13.60 17«12r 13.44r 17.24 13.40 17.15 n.a. 5.25 9.90r 10.25 9.40 9.00 &.84 8.25 Farm p r o d u c t i o n l o a n s (one y e a r of l e s s m a t u r i t y ) Feeder c a t t l e operations Other f a r m p r o d u c t i o n o p e r a t i n g expenses Consumer- i n s t a l m e n t c r e d i t f o r : New a u t o m o b i l e s (36 months) Mobile homes (84 months) Other consumer goods (24 months) Other p e r s o n a l e x p e n d i t u r e s (12 months) .. Credit card plans ^ - Business loans—prime r a t e To s m a l l b u s i n e s s e s To l a r g e b u s i n e s s e s 1/ March 1975 . ; Loans of $ 1 0 , 0 0 0 t o $25,000 m a t u r i n g i n one y e a r o r l e s s . NOTE: Except f o r t h e p r i m e r a t e on l o a n s t o l a r g e b u s i n e s s e s , t h e i n t e r e s t r a t e s shown on t h i s r e l e a s e s a r e b a s e d on a s u r v e y c o n d u c t e d j o i n t l y by t h e F e d e r a l R e s e r v e System and t h e F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n a t 370 i n s u r e d commercial b a n k s . A l l r a t e s e x c e p t t h e p r i m e r a t e s r e p r e s e n t s i m p l e unweighted a v e r a g e s of t h e "most common" p f f e c t i v e a n n u a l r a t e on l o a n s made d u r i n g t h e f i r s t f u l l c a l e n d a r week of thfe month i n e a c h l o a n . c a t e g o r y . The "most common" r a t e i s d e f i n e d a s t h e r a t e c h a r g e d on t h e l a r g e s t d o l l a r v o l u m e j o f • l o a n s i n t h e p a r t i c u l a r c a t e g o r y d u r i n g t h e week c o v e r e d , i n t h e s u r v e y . Consumer i n s t a l m e n t l o a n r a t e s a r e r e p o r t e d on a T r u t h - i n - L e n d i n g b a s i s a s s p e c i f i e d i n t h e F e d e r a l R e s e r v e B o a r d ' s R e g u l a t i o n Z. r—Revised (over) ,The prime r a t e on l o a n s t o s m a l l b u s i n e s s e s , a s p r o v i d e d f o r i n the. d u a l p r i m e r a t e s t r u c t u r e e s t a b l i s h e d by trie Committee on I n t e r e s t and D i v i d e n d s i n t h e i n t e r e s t r a t e c r i t e r i a f o r c o m m e r c i a l b a n k s , i s s u e d A p r i l 16, 1973,- .is t h e b e s t r a t e c h a r g e d by a bank t o i t s most c r e d i t - w o r t h y l o c a l c u s t o m e r s . For the C o m m i t t e e ' s p u r p o s e s , a small' b u s i n e s s i s d e f i n e d a s any d o m e s t i c commercial, i n d u s t r i a l , o r a g r i c u l t u r a l b o r r o w e r whose t o t a l b o r r o w i n g s o u t s t a n d i n g a t any one t i m e o v e r t h e p r e c e d i n g 12 months ( e x c l u s i v e of l o n g - t e r m r e a l e s t a t e m o r t g a g e d e b t ) d i d n o t exceed' $350,000 and whose a s s e t s do n o t exceed $1 m i l l i o n . The f i g u r e shown i s t h e s i m p l e u n w e i g h t e d a v e r a g e of t h e r a t e s i n e f f e c t on t h e l a s t b u s i n e s s d a y of t h e f i r s t f u l l c a l e n d a r - week of t h e month; t h e r a n g e of v a r i a t i o n of t h e s e r a t e s i s c o n siderable. The l a r g e b u s i n e s s prime r a t e i s t h e r a t e most commonly q u o t e d by l a r g e b a n k s on t h a t d a t e . S i n c e t h e prime r a t e i n f o r m a t i o n h a s n o t b e e n c o n v e r t e d t o an e f f e c t i v e r a t e b a s i s , t h e r a t e s shown a r e n o t d i r e c t l y c o m p a r a b l e t o t h e o t h e r r a t e s shown on t h i s r e l e a s e .
