ClarkeInterest rates have continued to trend down with the announcement last week that the Bank of Nova Scotia (BNS) Jamaica has reduced its prime lending rate by 200 basis points, effective May 1.
A release from BNS said the latest interest rates reduction means that the Bank has lowered the fees by 375 basis points (3.75 per cent) within the last four months.
BNS said its Jamaican dollar base rate has been lowered from 24.75 per cent to 22.75 per cent per annum. Scotia Plan loans amortised up to 36 months and secured by real estate will attract a rate of 16.5 per cent add-on and almost 27.8 per cent to 29.3 per cent on the annual percentage rate (APR). Those loans guaranteed by other security will attract rates of 17.5 per cent add on and 29.4 per cent to 31 per cent APR.
Scotia Plan loans amortised between 37 and 60 months and secured by real estate will attract interest rates of 17.5 per cent add on and 28.2 per cent to 29.4 per cent APR, while those loans secured by other collateral will attract rates of 18.5 per cent add on and 29.5 per cent to 31 per cent APR.
Effective June 1, 2001, secured ScotiaLine loans will attract interest rates of 25.75 per cent and unsecured loans will attract an additional two percentage points or 27.75 per cent. The U.S. dollar base rate will be 11 per cent.
BNS Jamaica's managing director, William Clarke, said that the reduction in interest rates were made as a result of an ongoing process in which they review their fees based on market variables.
The last time BNS announced a reduction in interest rates was in February when Mr. Clarke announced during the Bank's annual general meeting, that the base rate would be lowered by 25 basis points to 24.75 per cent.
National Commercial Bank (NCB) has earlier announced that it would be lowering its interest rate by 1.75 per cent, from 26.5 per cent to 24.75 per cent, effective February 5.
