Indian Overseas Bank (IOB), one of the leading public sector banks in India has announced reduction in interest rates for MSME borrowers. MSMEs are the backbone of Indian economy as they provide employment to over 120 million people across the country. IOB is giving more thrust to financing MSME units by providing customised schemes launched to cater their varying needs.

To support this segment, IOB has reduced the interest rates by minimum of 15 basis points to 90 basis points across different categories. Further the bank has also reduced the commission on opening of Letter of Credit and Bank Guarantees.

For loans ranging from Rs.25 lacs to Rs 20 million the interest rate is reduced by 50 basis points and for loans above Rs. 20 million, the rate is reduced by 15 basis points to 90 basis points depending on the rating of the MSME units. The effective date of the above reduction is for the loans availed or renewed from April 1, 2018.

Shares of the bank gained Rs 0.1, or 0.56%, to settle at Rs 18.05. The total volume of shares traded was 56,707 at the BSE (Friday).