A survey done by Federal Reserve has shown that in spite of low rates of interest the demand for loans has failed to pick up. This is for the last quarter and the pre-crisis level is far from being achievable, said the research report.

The terms of loans have been eased for both big as well as businesses. The Fed said that the change has been modest and has been the undoing of the widespread tightening that took place for many years.

It also said that the central banks are facing the huge challenge of maintaining a high rate of growth even when the unemployment rates are touching sky-high figures. The chunk with Fe, value of which is $2.05 billion, is shrinking and is yet to see a substantial rise in consumer and corporate loan.

Analysts believe that the trouble as of now is not for supply but for demand. They say that the private sector is not responding the way it should have been.

But, the survey also reported that only five out of 29 banks have loosened their interest rates. 21 banks have reported a rise in demand for mortgage while 16 found it to be decreasing.