NEW DELHI, SEPT 29: SKS Microfinance Ltd has decided to reduce the interest rate charged to its borrowers from 22 percent to 20.75 percent on income generating loans to be extended with effect from October 01, 2015.
With the third interest rate cut and an overall reduction of 3.8 percent since October 2014, SKS Microfinance Limited now charges what is considered the lowest rate among global Micro Finance Institutions on its core Income Generating Loans (IGL) which are unsecured micro loans. It had been charging the lowest interest among Indian MFIs since July 2015 with a reduction of 1.55 percent in that month, in addition to the 1 percent reduction in October 2014.
The reductions are 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.
