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r e l e a s e ,

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For immediate release

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. January 17, 1975

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

Interest rate (per cent per annum)
January "
November
Debember
1
1972
"
1974 f
1974

Small short-term noninstalment
loans to businesses 1/

.31
7,

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

10.9,4.

.63
7.

10.58

"

12. 74
17, 11

a.
5. 25

:

13.47
17.16

11.48

10.70'
;

10.39
11.62
11.71
13.27

11.57
11.87
13.16

,
10. 26
10.
,94 ,
,57
12.

Business loans—prime rate
To small businesses
*
To large businesses

:

11.75

.55
7,

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

1/

t
f

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•

10.10
11.00

13.60
17.16

9.95

10.50

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 calendat week of the month in each loan category. The
"most common" rate is defined as the rate charged on the largest dbllar
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 Board's Regulation Zl
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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^nterest 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
Tborrowings 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
ti
assets do not exceed $1 million. -The figure shown is t t e simple unweighted
average of the rates i% effect on the last business day of the first full
calendar week of the month; jthe 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 directly
comparable to the other rates shown on this release.