Vijaya Bank cuts interest rates on MSME loans up to 1%

It is offering them incentives by way of a further reduction in the rate of interest ranging from 0.25% to 1% depending upon the ratings obtained

Vijaya Bank has slashed interest rates on MSME (Micro, Small and Medium Enterprises) loans by up to one per cent across the board, effective from tomorrow.

Also, in order to encourage MSME units to go in for rating by accredited external credit rating agencies, it has offered them incentives by way of a further reduction in the rate of interest ranging from 0.25% to one% depending upon the ratings obtained, the public sector bank said in a statement.

The bank has identified MSME sector as a thrust area and it has recorded a 22.43% annual growth under this segment for the year ending March, 2012, it said.

"Already several MSME melas have been conducted and the bank has also implemented 'E-tracking' of MSME for online loan applications," it added.