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SKS Microfinance to provide small loans at 24.55%

SKS Microfinance to provide small loans at 24.55%
PTI
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First Published: Tue, Jan 11 2011. 01 52 PM IST
Updated: Tue, Jan 11 2011. 01 52 PM IST
Mumbai: Hyderabad-based SKS Microfinance said it was reducing interest rates and would charge 24.55% per annum from all categories of small borrowers on Tuesday.
“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 stock exchanges, National Stock Exchange and Bombay Stock Exchange.
SKS Microfinance, which has been in the limelight for sacking its MD & CEO Suresh Gurumani and allegedly using coercive methods for recovery of loan, used to charge about 28-31% interest from small borrowers.
According to state government officials, about 30 persons were reported to have committed suicide in the southern state during September-October 2010 due to harassment by microfinance companies.
These had prompted the Andhra Pradesh government to come out with an ordinance to put a check on the activities of the microfinance companies.
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First Published: Tue, Jan 11 2011. 01 52 PM IST