SKS Microfinance on Wednesday announced a 1.25 per cent cut in the interest rate to 20.75 per cent with effect from October 1 for all future disbursals.
“With the third interest rate cut and an overall reduction of 3.8 per cent since October 2014, SKS Microfinance 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,” SKS Microfinance said in a BSE filing.
At present, the company charges 22 per cent rate from its borrowers.
The company said it had earlier slashed interest rate by 1.55 per cent in July and 1 per cent in October 2014.
It further said: “The reductions are consistent with the company’s policy of passing on the cost advantages accruing from reduction in cost of borrowing, economies of scale and operational efficiency to its borrowers.”
The stock of SKS Microfinance was trading at Rs 394.05, up 0.42 per cent, on BSE.