Muthoot Microfin, a key player in India’s microfinance sector, has announced a reduction in interest rates on two types of loans aimed at supporting borrowers. The Kerala-based lender has lowered interest rates for microfinance loans for income-generating activities by 25 basis points, bringing the minimum rate to 23.05%. Additionally, rates for loans used to purchase third-party products have been reduced by 125 basis points, with a new range of 22.7% to 23.7%.
This marks the third time this year that Muthoot Microfin has cut its rates, reflecting the lender’s ongoing commitment to providing affordable financial solutions. A processing fee ranging from 1% to 1.5% will apply on these loans.
Key Changes to Muthoot Microfin Loan Rates:
- Income-Generating Loans: Interest rates reduced by 25 basis points to a minimum of 23.05%, with rates going up to 23.7% based on borrower risk profile.
- Third-Party Product Loans: Interest rates slashed by 125 basis points, now ranging from 22.7% to 23.7%.
Muthoot Microfin, part of the Muthoot Pappachan Group, has previously signaled further rate reductions, continuing to prioritize borrower-friendly policies.
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