IFCI cuts benchmark lending rate by 55 basis points

Term finance lender IFCI today reduced its benchmark lending rate by 0.55 percentage point in line with market competition.

The state-owned company has reduced benchmark lending rate from 10.75 per cent to 10.20 per cent with monthly rests, IFCI said in a statement.

The new rate would be effective from April 13 onwards, it said.

However, the short-term benchmark rate (IBR-ST) has been increased by 0.45 percentage point to 8.80 per cent from 8.35 per cent, with monthly rests for lending for tenure up to three months only, it added.

Monthly rest indicates that the interest is calculated on the basis of outstanding principal at the end of previous month.