The interest rates have been cut to accelerate trade and commerce in the country, says a press release.

The new rates will be effective from January 1, 2004.

Interest rate on all loans and advances has been reduced from 0.50 up to 6 percentage point. The rate of interest has been re-fixed on agriculture loan including Swanirvar and poverty alleviation, special credit and micro credit at 10 per cent, large and medium-term industries loan and working capital loan at 11 per cent, export credit at 7-9 per cent, small and cottage industries at 10 per cent, and other credits at 10-12 per cent.

This reduction of interest rates will accelerate the flow of investment, expand agro-based industries and develop trade and commerce.