Andhra Pradesh to pay more interest for loans than Telangana
Officials said this is the first time loans are taken at the highest rate of interest.
Hyderabad: The AP government will have to pay 0.05 per cent more interest than what the TS government will pay on public borrowings. AP has borrowed Rs 1,500 crore and TS '500 crore on Tuesday.
In the auction conducted by Reserve Bank, banks have come forward to give loan to Telangana at the rate of 8.19 per cent interest. For AP, state banks have given loans at the rate of 8.24 per cent interest.
Officials said this is the first time loans are taken at the highest rate of interest. They said banks decide the interest rate based on the repaying capacity.
On Tuesday, a total of 15 states have made public borrowings. Haryana has taken Rs 800 crore at the rate of 8.27 per cent interest.
After AP, Odisha and Punjab have taken loans at the interest rate of 8.24 per cent. Kerala has taken Rs 500 crore at the lowest interest rate of 8.18 per cent.
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