Term finance lender IFCI today reduced its benchmark lending rate by 0.75 percentage point in line with market competition.

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The company has reduced benchmark lending rate from 11.50 per cent to 10.75 per cent with monthly rests, IFCI said in a statement.

The new rate would be effective from January 15, it said.

However, the short-term benchmark rate (IBR-ST) has been reduced by 0.25 percentage point from 8.60 per cent to 8.35 per cent with monthly rests for lending for tenure up to three months only, it added.