Real interest rates are high, says Jalan
By Our Banking Bureau | 19 Mar 2002
New Delhi: Reserve Bank of India governor Dr Bimal Jalan has said the real interest rates have been on the higher side. The interest rates are soft; it will be softer.
While justifying the Union Budget proposal of a 0.5-per cent cut in small savings, Jalan said: The real interest rates at which corporates borrow funds from banks and financial institutions are still higher if compared to their prime lending rates.
While justifying the Union Budget proposal of a 0.5-per cent cut in small savings, Jalan said: The real interest rates at which corporates borrow funds from banks and financial institutions are still higher if compared to their prime lending rates. 
Consumers have to pay a higher interest of 12.5 per cent for housing and consumer loans, he said. This is despite the fact that the government has been able to go in for 10-year-borrowings at 7.5 per cent.