SKS Microfinance will avail its first refinance limit from MUDRA whereby MUDRA (Micro Units Development & Refinance Agency), launched by the Government of India for financing micro entrepreneurs engaged in small business activities like manufacturing, processing, service sector and trade, has sanctioned a refinance line of Rs 100 crore at 10% per annum to SKS Microfinance.
The development is expected to contribute to bringing down the cost of interest-bearing liabilities at SKS. Earlier, with the cost of its interest-bearing liabilities dropping to 11.9% in Q1-FY16 from 13.6% in FY14 on account of downward adjustments in risk premium, the company could reduce the interest rate charged to 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. SKS operates across 16 states of India.
