bank profits rates can get affected with continuous withdrawals. Higher the balance more will be the profit earned.
Fewer citizens borrow money to buy houses or cars
The "Prime Interest Rate" is the interest rate used by banks to base all their loan interest rates (and sometimes other interest rates) on and is usually lower than the lowest rate charged on loans to customers with the best credit ratings.
that consumers want to borrow money to invest
Interest each year is 275 × 4% = 275 × 4/100 = 11
→ total interest over 4 years is 4 x 11 = 44
→ total to repay after 4 years is 275 + 44 = 319
They can earn interest on the cash if it is invested.
Unsecured business loan rates of interest in India usually range between 18-22%. There's a greater perceived risk by banks so rates for Unsecured Business Financial loans are usually greater compared to other kinds of financial loans. A Business Loan in India typically includes a tenor of one to three years.