Real interest rates are high, says Jalan
By Our Banking Bureau | 19 Mar 2002
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.