Chase cuts rate

Chase Manhattan Bank is to cut its monthly flat interest rate for personal loans to 0.39 per cent.

This is believed to be the territory's lowest for personal loans.

Consumer loans head Alan Tsang said the rate cut would not substantially hurt profit margins, because the bank was aiming at high-income customers with good credit records. Customers would have to borrow more than $100,000 to receive the low rate.

He expected the bank's personal loans to record a 30 per cent growth this year, the same as in 1996.

Personal loans now comprise 20 per cent of Chase's retail loan portfolio in Hong Kong.