SKS Microfinance to levy 1% processing fee

MUMBAI: SKS Microfinance today said it will charge a processing fee of 1 per cent of the amount on all micro loans offered, a move that would provide greater transparency in operation.

The credit shield insurance premium will be collected from the borrowers on the actual basis without any administrative charges, SKS Microfinance informed the Bombay Stock Exchange.

The new charges would be levied from June 1, it said. This is in accordance with the RBI guideline earlier this month.

As per the guideline, an MFI can levy only three charges --- a processing fee not exceeding 1 per cent of total amount, interest and insurance charge.

Source: EconomicTimes