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- T 7 F E D E R A L R statistical E S E R V E r e l e a s e , . ' For immediate release ' . 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 ' • 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 ' 4 , \ r—Revised (over) I I 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.