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F E D E R A L R statistical i/ G. 10 E S E R V E r e l e a s e For immediate, release . May 16, 1975 v INTEREST RATES CHARGED ON SELECTED TYPES OF BANK LOAJJS Type of Loan Interest rate (per cent per annum) January March April 1972 1975 L 1975 Small short-term noninstalment loans to businesses 1/ * Farm production loans (one year of less maturity) Feeder cattle operations Other farm production operating expenses 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 Business loans—prime rate To small businesses To large businesses 1/ 7.31 10.28 9.55 7.55 9.92 9.53 7.63 9..88= 9.56 10.26 10.94 12.57 11.66 11.46 13.07 13.22V 11.45 11.78 12.74 17.11 13.40 17.15 13.56. 17 ill n.a. 5.25 8.84 8.25 8.26" 7.50 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. In the April survey, 332 banks reported their rates on small yshort-term noninstalmei.loans to businesses; 62 reported their rates on feeder cattle operations loans; 82 reported their rates on other farm production operating expenses loans; 334 reported their rates on new automobiles, 45 reported their rates on mobile homes, 273 reported their rates on other consumer goods, 337 reported their rates on other personal expenditures, 217 reported their rates on credit card plans; and 269 reported their small business prime rates. All-rates except the prime (over) rates represent simple unweighted avenges, of the "most common" effective annual rate on loans made during the first full calendar week of the month in each loan category. The "most common" rate is defined as the rate charged on the largest dollar volume of loans * in the particular category during the week covered in the survey. Consumers/instalment loan rates are reported on a Truth in Lending basis'as specified in the Federal Reserve Board's Regulation Z. The prime rate on loans to4 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 outstandings 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 is the simple unweighted average of the > rates in effect on tjie last business day of the first full calendar j week of the month* the range of variation of these rates is considerable. The large business priqie%.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.
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