United Bank of India has slashed interest rate on micro and small enterprise (MSME) loans by 50-400 basis points depending on the tenure and nature of loans. It has also offered benefit of 50 basis points for those making use of the Credit Guarantee Fund Trust for Micro and Small Enterprises cover.
The bank aims to fulfill MSE sector starved of collaterals and will encourage collateral-free lending from this initiative. The new rates will be with effect from August 15, 2012 for all the existing and new MSE customers. The bank anticipates to disburse loans worth Rs 1,000 crore through this initiative.
