New Delhi: One of the leaders in providing finance to the Micro, Small and Medium Enterprises (MSMEs), the Small Industries Development Bank of India (SIDBI) has decided to cut its Prime Lending Rate (PLR) and interest rates on deposits.

The PLR, which was earlier pegged at 12.5 percent has been reduced to 12 percent. The interest rates on fixed deposits have been reduced by 25 basis points, which translates into a cut of 0.25 percent.  This reduction in interest rates will be applicable to all the deposits from January 19 this year.

Under the revised rate regime, the 12 month to 23 month deposit from SIDBI will now earn interest at 8.00 percent, deposit of duration 24 months to 35 months will earn the interest at 8.25 percent. The 36 months to 47 months deposit will be available at an interest of 8.50 percent while, the 48 months to 59 months deposit will be available at 8.75 percent. The 60 months deposit will have the maximum interest at 9.00 percent on an annual basis.

For senior citizens the revised rates for the 12 to 23 months deposit from SIDBI will be 8.50 percent, while the 24 to 35 months deposit will have an interest rate of 8.75 percent. The 36 to 47 months deposit for senior citizens from SIDBI will earn interest at a rate of 9.00 percent and the 48 to 59 months deposit for senior citizens bring in a return of 9.25 percent per annum. The 60 months deposit for senior citizens will now be available at an interest rate of 9.50 percent.