BANKS NOT TO GIVE, RENEW LOANS LINKED TO MIBOR

With interest rate going up, banks have completely done away with one of the most widely used corporate loan products. These are loans linked to MIBOR (Mumbai inter bank offer rate) - an Indian money market benchmark rate similar to LIBOR (London Inter Bank Offer Rate). MIBOR is not moving up with the interest rates in the market, and has thus ceased to be a benchmark rate for loans to corporates.