Vijaya Bank cuts interest rate on loans to small units

With an additional thrust on the micro small and medium enterprises (MSME) loan portfolio, Vijaya Bank has reduced the interest rate on MSME loans by 0.25-0.75 percentage points with effect from March 1, 2012, said a press release from the bank.

Apart from this, wherever the borrowers' account is rated by external credit agencies, the bank extends further reduction in the interest rate ranging from 0.25 to 1 percentage points.

“MSME is a thrust area for us because it is an employment generator and also bridges the gap between the manufacturing sector and the lowest strata of society. We consider it an important link in the entire value chain,” Ms Shubhalakshmi Panse, Executive Director, Vijaya Bank, told Business Line. According to her, the MSME segment is currently growing at 25-28 per cent for the bank.

anju@thehindu.co.in