Hyderabad-based SKS Microfinance has decided to cut its interest rate by 1.25 percent to make it 20.75 percent with effect from October 1, 2005.
The current rate of interest charged by SKS is at 22 percent and far less than many other microfinance lenders in India which provide loans at 25% on an average.
“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),” SKS Microfinance said in a filing with the BSE.
The SKS Microfinance charges lowest among global micro finance institutions for income generating loans without any collateral, said SKS Microfinance in a statement.
The Hyderabad-based SKS reduced its interest rates by 1% in October 2014 and by 1.55% cut in July this year. With the new cut by another 1 percent, SKS will provide tough competition to its rivals in microfinance sector.