The interest rates for deposits and loans in the non-bank financial sector have increased despite the cut in margins since the benchmark rate is on the rise. 

According to a notice by the central bank today, the highest interest or profit rate on deposits offered by non-bank financial institutions (NBFIs) will be SMART plus 2.5 percent, down from 2.75 percent in November.

The lending rate against loans, leases, or investments will be SMART plus 5.5 percent. The margin was 5.75 percent earlier. 

SMART refers to the Six-Month Moving Average Rate of Treasury Bills, the instrument the BB uses to make interest rates flexible within bounds. 

The current SMART rate is 9.61 percent, up from 7.72 percent in November. 

Consequently, the deposit rate will now be a maximum 12.11 percent against 10.47 percent in November. Similarly, the lending rate will be 15.11 percent, an increase from 13.47 percent.  

The new rates will be applicable for new deposits and loan disbursements, the notice said.