Brands
Discover
Events
Newsletter
More

Follow Us

twitterfacebookinstagramyoutube
Youtstory

Brands

Resources

Stories

General

In-Depth

Announcement

Reports

News

Funding

Startup Sectors

Women in tech

Sportstech

Agritech

E-Commerce

Education

Lifestyle

Entertainment

Art & Culture

Travel & Leisure

Curtain Raiser

Wine and Food

YSTV

ADVERTISEMENT
Advertise with us

SKS Microfinance gets Rs 100 Cr refinance line from Mudra to support micro entrepreneurs

SKS Microfinance gets Rs 100 Cr refinance line from Mudra to support micro entrepreneurs

Thursday October 29, 2015 , 2 min Read

SKS Microfinance has said Micro Units Development and Refinance Agency (Mudra) has sanctioned a refinance line of Rs 100 crore to the company at 10 per cent per annum to extend finance to micro entrepreneurs. This is the first refinance limit sanctioned to the micro-finance firm by Mudra, a company release said in Mumbai.


yourstory-micro-entrepreneur

"At a rate of 10 per cent, this is lower than regular term loans from conventional lenders, and reinforces our assertion in the recent past that the non banking financial company micro finance institution (NBFC-MFI) structure does not preclude us from availing dedicated refinance lines at a lower rate of interest," SKS Microfinance President Dilli Raj said.

The limit will help the micro-finance company bring down the cost of its interest-bearing liabilities, which stood at 11.9 per cent at the end of first quarter of FY16. The company has seen an overall reduction of 3.8 per cent in cost of its interest-bearing liabilities since October 2014.

"We will pass on this benefit to our microfinance borrowers at an appropriate juncture," Raj said. Mudra was set up by the government for development and refinancing activities relating to micro enterprise units. Its purpose is to provide funding to the non-corporate small business sector which is mostly outside the formal credit system.

Image Credit: Shutterstock


Read More:

SIDBI launches India Microfinance Platform with World Bank Support

Suryoday Microfinance raises an INR 20 crore round led by Aavishkaar Goodwell and Lok Capital

Delhi based microfinance institution Satin Creditcare Network Limited raises $7.6 million in new funding