Industry sources say close to 20 NBFC-MFI players, including Belstar Microfinance, Svatantra Microfin and Annapurna Finance, have already slashed rates in the December quarter. Midland Microfin and ASA International India Microfinance have reduced the interest rate by up to 125 basis points (bps).
Spandana Sphoorty Financial and Satin Creditcare Network also plan to cut rates across categories. Earlier, Muthoot Microfin had cut interest rate by 25-55 bps depending on the risk category of borrowers.
Unlike diversified non-bank lenders, NBFC-MFIs have been aided by the fact they largely operate in the unsecured loan segment. So, they are able to price their loans on the basis of the perceived risk of default. Due to presence in far-flung areas, these entities are also able to ward off competition from banks in this segment.
Said Shalabh Saxena, MD & CEO, Spandana Sphoorty Financial, "We have already initiated the system changes where we are planning to reduce the interest rates by 50-100 bps for customers who have been with us for more than four years.
Bu hikaye Financial Express Mumbai dergisinin March 04, 2024 sayısından alınmıştır.
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Bu hikaye Financial Express Mumbai dergisinin March 04, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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