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Wednesday, September 23, 2015

SKS Microfinance cuts interest rate by 1.25%

SKS Microfinance has announced a 1.25 per cent reduction in the interest rate charged to borrowers from 22 per cent to 20.75 per cent with effect from October 1, 2015, for all future disbursals.

This is the third interest rate cut effected since October 2014.

In July 2015, the MFI had cut the lending rate by 1.55 per cent. In October 2014, it had reduced the rate by 1 per cent.

SKS Microfinance, in a statement, said it could reduce its cost of interest-bearing liabilities to 11.9 per cent in Q1FY16 from 13.6 per cent in FY14 on account of downward adjustments in risk premium.

"...Improved profitability in FY15 and Q1-FY16, capital raised in May 2014, a rating upgrade, and issuance of commercial papers and non-convertible debentures are the factors that drove the reduction in its cost of borrowing," it said.

Source : Thehindubusinessline


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