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re l e a s e
For immediate release
G.IO
September 24, 1974 .
INTEREST RATES CHARGED ON SELECTED TYPES OF B A N K LOANS
Interest rate (per cent per annum)
January
August
July
1974
1972
1974
Type of Loan
Small short-term noninstalment
loans to businesses
1/
;,
Farm production loans (one year
of less maturity)
Feeder cattle operations
Other farm production
operating expenses
11,47
11.79
7 •55
10.74
10.88
7.,63
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. 26
10.,94
12.,57
'
.
9
'
9 2
10.96r
11,46
13 14
12.,74
17. 11
13.42
17.^0r
n. a.
5. 25
9.85r
12.00
Business l o a n s — p r i m e rate
To small businesses
To large b u s i n e s s e s ^
W
1/
7.31
10.29
*
f
;
11.715
11.71
13.10
. 13.45
/ j.7.21
;
Loans of $10,000 to $25,000 maturing in one year or, less.
,
9.97
12.00
5
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 b y 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", ef fect^re^annual rate on loans made
during the first .full calendar week of the mont^CilEeach loan category. The
"most common" rate is defined as the rate chargeQsjp^''the largest dollar
volume of 16ans in the particular category during%€ne week covered in the
survey.
Consumer instalment loan rates sare reported on a Truth-in-Lending{
basis as specified in the Federal Reserve Board's Regulation Z.
>
•
r—Revised
(over)
Trie prime rate- on loans to small businesses, as provided for in
the dual prime rate structure established by the CoSnmittee on Interest and
Dividends j.n the interest rate CBit6jria for commercial ibanks, issued April £6,
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 riot exceed $350,000 and whose
assets do not exceed $1 million.
The figure shown is the simple unweighted
average of the rates in effect otl the last business day of the first full
calendar week of the month; the range of* varajation 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 irate basis, the rate's shown are not directly
comparable to the other rates shown on this release.
@FedFRASER