SKS Microfinance has announced a 1.55% reduction in the interest rate charged to borrowers from 23.55% to 22% with effect from July 1, 2015. This is the second interest rate reduction announced by the company since October 2014, when a 1% reduction was implemented. With the present reduction, the company charges the lowest rate among Non- Banking Financial Company - Micro Finance Institutions (NBFC-MFIs) on its core Income Generating Loans (IGL) which are unsecured micro loans.
The announcement is consistent with the company’s policy of passing on the cost advantages accruing from reduction in the cost of borrowing, economies of scale and operational efficiency to its borrowers.
SKS Microfinance is a non-banking finance company (NBFC), registered and regulated by the Reserve Bank of India, whose mission is to provide financial services to low-income households.
