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F E D E R A L statistical R E S E R V E — - r e l e a s e ffUt to#?G.IO I For immediate release | 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 | 8.36 9.75 1 1/ Loans of $10,000 to $25,000 maturing in one year or less. -' 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) I 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.