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For immediate release

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December 18, 1973

INTEREST RATES CHARGED ON SELECTED TYPES OF BANK LOANS
Type of Loan

'

Interest rate (per cent per annum)
•
«
January
October
November
1972
'
1973
1973

Small short-term noninstallment
loans to businesses
1/

7.31

9.76

9,66

Farm production loans (one year
or less, maturity)
Feeder cattle operations
Other farm production
operating expenses

7:55
J
7.63

. 9,71

9.55

9.09

9.23

10.26
10.94

10.53
10.98r

10.49
11.19

Consumer installment credit for:
New automobiles (36 months)
Mobile homes (84 months)
' Other consumer goods
(24 months)
Other personal expenditures
(12 months)
Credit card plans

12.57

12.80

12.75

12.74
17.11

13.02r
17.23

12.94
17.23

' n'.a .
5.25

8.31
.10.00

Business loans--prime rate
T o small businesses
To large businesses

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8.36
9.75

1
1/ Loans of $10,000 to $25,000 maturing in one year or less.
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NOTE: Except for the prime rate on loans to large businesses, the interest
rates shown on this release are based on a survey conducted jointly by the
Federal Reserve System and the Federal Deposit Insurance Corporation at 370'
insured commercial banks. All rates except the prime rates represent simple
unweighted averages of the "most common" effective annual rate on loans made
during the first full calendar week of the month in each loan category. The
"most common" rate is defined as the rate charged on the largest.dollar volume
of loans in the particular category during the week covered in the survey.
Consumer installment loan rates are reported on a Truth-in-Lending basis as
specified in the Federal Reserve Board's Regulation Z.

r - Revised




(over)

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The prime rate" on loans to* small Businesses.,, as provided for in .
'the dual prime rate .structure established by the Committee on Interest and
Dividends in the interest rate criteria for commercial banks, issued April 16,
•1973, is the best rate charged by a bank to its most credit-worthy local
customers. For the Committee's purposes, a small business is defined as any
domestic commercial, industrial, or agricultural borrower whose total
borrowings outstanding at any one time over the"preceding 12 months (exclusive
of long-term real-, estate mortgage debt) did not exceed $350,000 and whose
assets do not excfeed $1 million. The figure . shown is the simple unweighted
average .of the rates in effect on the last business day of the first full calendar week of,the month; the range of variation of these rates is considerable. The large business prime rate is the rate most commonly quoted
by .large banks on that date. Since the prime rate information has not been
converted to an effective rate basis, the rates shown are not|.direct ly
comparable to the other rates shown on this release.