Muthoot Microfinance cuts interest rates

KOCHI: Muthoot Microfin Ltd (MML) said it has decided to cut interest rates by 35 basis points (bps). This is the second rate reduction that company has introduced this year. Previously in January, Muthoot Microfinance as reduced interest rates by 55 bps.

With this reduction, the effective lending rate for MML would reduce from 23.65 per cent to 23.30 per cent. A statement from the company said this strategic initiative aligns with Muthoot Microfin’s commitment to making financial services more accessible and affordable for potential customers.

Sadaf Sayeed, CEO of Muthoot Microfin, said, “Muthoot Microfin being a customer-centric microfinance lender continues to share the benefit of efficiencies in cost of fund (CoF) with its borrowers.”  In recent months, the company has been able to raise debt at a very competitive rate from domestic as well as international lenders