Muthoot Microfin reduces lending rate by 35 bps

Kolkata: Muthoot Microfin has decided to lower lending rate by 35 basis points for micro loans to 23.3% a year. One basis point is a hundredth of a percentage point.

“In recent months we have been able to raise debt at a very competitive rate, from domestic as well as international lenders... As a result, we have been able to pass the benefit of cheaper cost of funds to our new borrowers, all this while keeping our net interest margin intact,” Muthoot Microfin chief executive officer Sadaf Sayeed said.

Its net interest margin for the March quarter stood at 13.52%, 65 basis points more than what it was in the year-ago period. Its assets under management was at Rs 12,193 crore at the end of March.