11 November 2024
Muthoot Microfin will reduce its lending rates by a quarter of a percentage point this month. This marks the microfinance company's third rate cut this year, and it aims to pass on the benefits of lower funding costs to borrowers. As chief executive Sadaf Sayeed stated, during a board meeting on November 5, the company decided to maintain its net interest margin (NIM) at 12.75-13.00% and adjust the lending rates accordingly. The decision to keep the NIM within this range comes a few weeks after the Reserve Bank of India reprimanded two microfinance lenders—Asirvad Micro Finance and Arohan Financial Services—for charging "excessive" interest rates compared to the costs at which they raise funds. Several other lenders are also likely to review their pricing policies following the October regulations imposed on these two companies.
Muthoot Microfin will reduce its lending rates by a quarter of a percentage point this month. This marks the microfinance company's third rate cut this year, and it aims to pass on the benefits of lower funding costs to borrowers. As chief executive Sadaf Sayeed stated, during a board meeting on November 5, the company decided to maintain its net interest margin (NIM) at 12.75-13.00% and adjust the lending rates accordingly. The decision to keep the NIM within this range comes a few weeks after the Reserve Bank of India reprimanded two microfinance lenders—Asirvad Micro Finance and Arohan Financial Services—for charging "excessive" interest rates compared to the costs at which they raise funds. Several other lenders are also likely to review their pricing policies following the October regulations imposed on these two companies.
Stay Connected, Stay Informed –
Don’t miss out on exclusive updates, market trends, and real-time investment opportunities. Be the first to know about the latest unlisted stocks, IPO announcements, and curated Fact Sheets, delivered straight to your WhatsApp.