IFCI slashes lending rate by 0.8 per cent

Term finance lender IFCI today lowered short-term lending rate by a steep 0.8 per cent following the 0.25 per cent repo rate cut by the RBI.

The company has reduced its short-term benchmark rate (IBR-ST) from 9.30 per cent to 8.50 per cent per annum with monthly rests for lending for tenure up to 3 months only, IFCI said in a statement.

The new rate would be effective from today, it said.

Earlier this month, RBI lowered the repo rate or the rate at which it lends to banks by 0.25 per cent.

The 6-member Monetary Policy Committee, which has three members nominated by the government and the rest from the Reserve Bank, lowered repo rate to 6.25 per cent from 6.50 per cent.