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FEDERAL s t a t i s t i c a l RESERVE r e Ie a s e For immediate r e l e a s e G.10 March 20, 1974 INTEREST RATES CHARGED ON SELECTED-TYPES OF BANK LOANS Type of Loan Small s h o r t - t e r m n ' o n i n s t a l l m e n t loans t o businesses 1/ Farm p r o d u c t i o n l o a n s (one y e a r or l e s s m a t u r i t y ) Feeder c a t t l e o p e r a t i o n s Other farm® p r o d u c t i o n operating expenses I n t e r e s t r a t e ( p e r c e n t per annum) ; January . \ January February 1 1972 1974 1974 . 9.p2 7.31 9.78 7.55 9.70 7.63 9.15 9.26 10.26 10.94 10.55 11.09 10.53 11.25 Consumer i n s t a l l m e n t c r e d i t f o r New a u t o m o b i l e s (36 months) Mobile homes (84 months) Other consumer goods (24 months) ? •Other p e r s o n a l e x p e n d i t u r e s (12 months) Credit card plans 12.57; 12.78 12.82 12.74 17.11 12.96 ' 17.25 v 13.02 17.>24 Business loans—prime r a t e To s m a l l b u s i n e s s e s To l a r g e b u s i n e s s e s 5.25 8.37 ;9.75 8.38 9,50 1/ Loans of $ 1 0 , 0 0 0 t o $ 2 5 , 0 0 0 m a t u r i n g i n one y e a r or l e s s . 1 • NOTE: E x c e p t f o r t h e prime r a t e on l o a n s t o l a r g e b u s i n e s s e s , t h e i n t e r e s t r a t e s shown on t h i s r e l e a s e a r e based on a s u r v e y , c o n d u c t e d j o i n t l y by t h e F e d e r a l R e s e r v e System and t h e F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n a t 370 i n s u r e d commercial b a n k s . A l l r a t e s e x c e p t t h e prime r a t e s r e p r e s e n t s i m p l e unweighted a v e r a g e s of t h e ^'most common" e f f e c t i v e a n n u a l r a t e on l o a n s made d u r i n g t h e f i r s t f u l l c a l e n d a r week of t h e month i n e a c h l o a n c a t e g o r y . The "most common" r a t e ijs d e f i n e d a s t h e r a t e c h a r g e d on t h e l a r g e s t d o l l a r volume , of l o a n s i n t h e p a r t i c u l a r c a t e g o r y d u r i n g t h e week c o v e r e d i n t h e s u r v e y . Consumer i n s t a l l m e n t l o a n r a t e s a r e r e p o r t e d on a T r u t h - i n - L e n d i n g b a s i s a s s p e c i f i e d in t h e F e d e r a l R e s e r v e B o a r d ' s R e g u l a t i o n Z. ' I I (over) ' The prime r a t e on l o a n s t o s m a l l b u s i n e s s e s , a s p r o v i d e d f o r i n t h e d u a l prime r a t e s t r u c t u r e e s t a b l i s h e d by t h e Committee on I n t e r e s t and D i v i d e n d s , i n t h e i n t e f c e s t r a t e c r i t e r i a f o r comme.rcia 1 b a n k s , i s s u e d A p r i l 16, 1973, i s t h e b e s t r a t e c h a r g e d by a - b a n k t o i t s most c r e d i t - w o r t h y l o c a l c u s t o m e r s T For t h e C o m m i t t e e ' s p u r p o s e s , a -small b u s i n e s s i s d e f i n e d a s any d o m e s t i c c o m m e r c i a l , i n d u s t r i a l , or a g r i c u l t u r a l b o r r o w e r whose t o t a l b o r r o w i n g s o u t s t a n d i n g a t any one time .over t h e p r e c e d i n g 12 months ( e x c l u s i v e of l o n g - t e r m r e a l e s t a t e mortgage d e b t ) d i d n o t exceed $350,000*-and whose a s s e t s do n o t exceed $1 m i l l i o n t The f i g u r e shown i s t h e s i m p l e unweighted a v e r a g e of t h e r a t e s i n e f f e c t on t h e l a s t , b u s i n e s s day of t h e f i r s t f u l l c a l e n d a r week of t h e month; t h e r a n g e of v a r i a t i o n of t h e s e r a t e s i s c o n s i d e r a b l e . ThA l a r g e b u s i n e s s prime r a t e i s t h e r a t e most commonly q u o t e d by l a r g e banks on t h a t d a t e . S i n c e t h e prime r a t e i n f o r m a t i o n h a s n o t been c o n v e r t e d t o an e f f e c t i v e r a t e b a s i s , t h e r a t e s shown a r e n o t d i r e c t l y comparable t o t h e o t h e r r a t e s shown on t h i s r e l e a s e .
