Big Rates for Little Guys

The prime has been halved, but small borrowers still pay dearly for loans

Customers of Bank of America have reason to feel a bit perplexed these days. Giant companies can now borrow from the San Francisco-based lender at a prime rate of 10½%, down from a peak of 21½% at the end of 1980. But the little guy who may need a few thousand dollars for a spring vacation or a home computer is getting no such break from the biggest U.S. bank. He must pay 19% for an unsecured personal loan, off somewhat...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!