New Delhi, Sept 23 (KNN) SKS Microfinance Limited today 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.

With the third interest rate cut and an overall reduction of 3.8 per cent 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, the company said in a statement.

Further, SKS Microfinance Limited could reduce its cost of interest-bearing liabilities to 11.9 per cent in Q1- FY16 from 13.6 per cent in FY14 on account of downward adjustments in risk premium.

SKS Microfinance Limited is among the largest microfinance companies in India with presence across 18 states covering 1,00,000 villages. The states include: Andhra Pradesh, Telangana, Karnataka, Maharashtra, Odisha, Madhya Pradesh, Bihar, Uttar Pradesh, Rajasthan, Uttaranchal, Haryana, West Bengal, Jharkhand, Chhattisgarh, Kerala, Punjab, Himachal Pradesh and Delhi. The Company’s mission is to provide financial services to the economically weaker sections. (KNN Bureau)