Trust Bank cuts interest rates

7 October 2009, 17:00 PM

Star Business Desk

Trust Bank has slashed interest rates on business loans, it said in a statement. The private bank slashed interest rates on women entrepreneur loan from 13.5 percent to 9 percent, agriculture credit from 10.5 percent to 10 percent and SME loan from 13.75 percent to 10 percent. The rates for export finance have been set at 7 percent and home mortgage loan at 13 percent. The interest rate for corporate credit will range between 11.5 percent and 13 percent and trade finance between 12-13 percent. Iqbal U Ahmed, managing director, said the bank decided to support the business community and potential business clients in times of the global recession. “We are on a mission to reach out to and support business in the country." Mohammad Masoom, executive vice president and head of credit risk management, said: "We want to ensure a risk adjusted rate of return on our credit portfolio and at the same time, focus on the customer's debt servicing ability." "The interest rate on a loan is a vital component of the cost of doing business. So, we are taking into consideration the client's cash generating capacity and potential."