BoQ chases SME lending with aggressive rate cuts
(26 August 2005 – Australia) Bank of Queensland has repriced its business term loans as part a wider push into the SME market and an acknowledgement that the bank is gaining traction in lending to the segment.
BoQ group executive of Business Banking, Ross Norton, described the move as "aggressive", saying more than 40 percent of the bank’s lending book was business loans.
"Our three year residential property secured business term loans, our most popular with our small business customers, is a clear market leader following the 0.45 percent per annum rate cut, and our other terms are now also very competitive with cuts of between 11 and 36 basis points," he said.
The three year business loans are secured by residential property.
Norton said BoQ had also reduced other security business term loans by between 10 and 20 basis points.
In the retail space, BoQ has repriced its most popular fixed interest rates saying it was giving borrowers a chance to lock in a rate ahead of impending rate rises.
Retail Banking group executive, Donna Quinn, said the three year term and other fixed rates were below the standard variable rate and offered customers the best chance ever of "locking in".
"We want to maintain growth momentum in our home lending book so we decided to price our most popular fixed rate loan, the three year, so far ahead of the market it would be hard for customers thinking of locking in to go anywhere else," she said.
"Our three year residential property secured business term loans, our most popular with our small business customers, is a clear market leader following the 0.45 percent per annum rate cut, and our other terms are now also very competitive with cuts of between 11 and 36 basis points," he said.
The three year business loans are secured by residential property.
Norton said BoQ had also reduced other security business term loans by between 10 and 20 basis points.
In the retail space, BoQ has repriced its most popular fixed interest rates saying it was giving borrowers a chance to lock in a rate ahead of impending rate rises.
Retail Banking group executive, Donna Quinn, said the three year term and other fixed rates were below the standard variable rate and offered customers the best chance ever of "locking in".
"We want to maintain growth momentum in our home lending book so we decided to price our most popular fixed rate loan, the three year, so far ahead of the market it would be hard for customers thinking of locking in to go anywhere else," she said.
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