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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.
