Mumbai, Nov 27 (KNN) SKS Microfinance today announced a 1 per cent reduction in the interest rate charged to borrowers from 20.75 per cent to 19.75 per cent with effect from December 7, 2015, for all future disbursals.
 
“With this, the Company becomes the first micro finance institution to charge a sub-20 per cent interest rate on its core Income Generating Loans (IGL) which are unsecured micro loans. Interest rate of 19.75 per cent is the lowest rate charged by any private sector MFI in the world,” the company said in a press release.

This is the fourth interest rate reduction, aggregating 4.8 per cent, announced by the company since 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 and economies of scale to its borrowers. 

The company said this is the fourth time the company has reduced interest rate since October 2014. It had earlier slashed rate by 1.25 per cent in September. (KNN Bureau)