Hyderabad based SKS Microfinance Ltd on Tuesday said it was reducing interest rates and will charge 24.55% per annum from all categories of small borrowers.
“The company will not collect charges towards credit shield charge, loan processing fee, and card fee with effect from 11 January. With this, all effective interest rate across country will be 24.55% for all future disbursements,“ it said in a filing to the stock exchanges.
SKS Microfinance, which has been in the news for sacking its managing director and chief executive Suresh Gurumani and for allegedly using coercive methods for loan recovery earlier charge 2831% interest from small borrowers.
Microfinance Definition: A type of banking service that is provided to unemployed or low-income individuals or groups who would otherwise have no other means of gaining financial services. Ultimately, the goal of microfinance is to give low income people an opportunity to become self-sufficient by providing a means of saving money, borrowing money and insurance.
“The company will not collect charges towards credit shield charge, loan processing fee, and card fee with effect from 11 January. With this, all effective interest rate across country will be 24.55% for all future disbursements,“ it said in a filing to the stock exchanges.
SKS Microfinance, which has been in the news for sacking its managing director and chief executive Suresh Gurumani and for allegedly using coercive methods for loan recovery earlier charge 2831% interest from small borrowers.
Microfinance Definition: A type of banking service that is provided to unemployed or low-income individuals or groups who would otherwise have no other means of gaining financial services. Ultimately, the goal of microfinance is to give low income people an opportunity to become self-sufficient by providing a means of saving money, borrowing money and insurance.
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