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F E D E R A L

R E S E R V E

statistical

release
• For "immediate release
February 28, 1975.

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

Small short-term noninstalment
loans to businesses 1/

7.31

11.48

11.29

7.55

. 10.70

10.62

7.63

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

10.39

10.30

11.62
11.71
13.27

11.62
11.
13.28

13.60
17.21r

13.60
17.16

Consumer instalment credit for:
New automobiles (36 months)
10.26
Mobile homes (84 months)
10.94
4
Other consumer goods (24 months)
12.57
Other personal expenditures
(12 months)
12.74
Credit card plans
17.11
Business loans--prime rate
To small businesses
To large businesses .

1/

L

Interest rate (per cent per-' annum)
January
December"
January
1972
1974
1975

n.a.
5.25

s

<

9.95
10.50

.

9.91
10.25

Loans of $10,000 to $25,000 maturing in one yelar or ffess. •

'

NOTE: Except for the prime rate on loans to large businesses, the .interest
rates shown oh'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 ratfes represent simple
unweighted averages pf the "most common" effective annual rate on loans made
during the first full calendar week of the month in each loan category. Ttie
"most common" rate is de&^ned as the rate charged on the largest dollar
volume of loans in the particular (category during the week covered in the
survey. • Consumer instalment loan rates are reported ,on a'Truth-in-Lending
.
basis as specified in the Federal Reserve Board1s Regulation Z.
r--Revised




* ;

(over)

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 exceed $1 million. The figure shown l s the simple unweighted
i
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 busi?*ess 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 directly
comparable to the other rates shown on, this release.