Interest payments of London
Inter Bank Offered Rate plus 3% a year would be payable on the outstanding balance.
The loans typically pay interest based on a spread over the London
Inter Bank Offered Rate (LIBOR).
This is because the benchmark Karachi
Inter Bank Offered Rate (Kibor) for six months is 9.
Bankers said the cut in the interest rate would reduce the Karachi
Inter Bank Offered Rate (Kibor) by 40 to 50 basis points and the benchmark six month rate could be around 9.
Its immediate impact: the six-month benchmark Karachi
Inter Bank Offered Rate goes up from 12.
25 percentage point above Japan
inter bank offered rate (Jibor).
Through all its production channels, Countrywide now offers a variety of ARMs based on several different indexes, including the Cost of Funds Index (COFI), London
Inter Bank Offered Rate (LIBOR), Monthly Treasury Average (MTA), prime rate and Treasury.
Afterward, it becomes an adjustable rate based on the London
Inter Bank Offered Rate, or LIBOR, plus 10.
This announcement follows the settlement reached by RBS in February this year with US and UK regulators in relation to investigations into submissions, communications and procedures around the setting of the London
Inter Bank Offered Rate ( LIBOR ).
The pressure led this week to Finance Minister Dar to call for $500 million credit for 12 months from the banks in Pakistan at a rate five per cent plus the London
Inter Bank Offered Rate, which will bring the total to 5.
Table--1 SBI interest rate,
inter bank offered rate, deposit interest rate and Loan interest rate, July 4, 2003 Interest rate Lowest--Highest SBI (one month) 9,3000% Jakarta Inter-bank Offered Rate 9,9340%-10,7500% (one month) Average-9,934 % Deposit (one month) 4,6000%-20,0000% Average-9,5493% Credit interest rate 10,0500%-28,000% Average-18,2852% Source: PIPU-BI
With the interest rate over 1 percent, which includes the London
Inter Bank Offered Rate (LIBOR) and the bank's service charge, the loan comes with a repayment period of 25 years with a grace period of 5 years.
