SKS Cuts Interest Rate to 24.55%
Wednesday, January 12, 2011
SKS Microfinance, the only listed microfinance institution (MFI) in the country, has reduced interest rates from 26.69 per cent to 24.55 per cent. The change would apply uniformly across the country, with effect from January 11.
“The company will not collect any credit shield charge, loan processing fee or card fee. With this, all effective interest rates will remain at 24.55 per cent (depreciating), or a flat 12.55 per cent a year, for all future disbursements,” the company said in a filing to the Bombay Stock Exchange (BSE) today.
SKS had earlier said its collections had dipped due to transition to monthly collections. Related changes in the management information system, passbook and member communication, mandated by the Andhra Pradesh Micro Finance (Regulation of Money Lending) Act, also contributed.