Microfinance loan borrowers will have to pay at least this much interest: RBI sets base rate for July quarter


Microfinance loan, RBI, base rate, NBFC, MFI, Reserve Bank, banking news, finance news, industry newsRBI sets the average base rate for NBFC-MFIs on the basis of average of base rate of the five largest commercial banks. (Reuters)

The Reserve Bank Friday set an average base rate of 9.18 per cent for non-banking financial companies and micro finance institutions to be charged from their customers for the quarter beginning July 1. “The applicable average base rate to be charged by non-banking financial companies and micro finance institutions (NBFC-MFIs) to their borrowers for the quarter beginning July 1, 2019 will be 9.18 per cent,” RBI said in a release.

The central bank in a circular in 2014 had communicated to NBFCs and MFIs regarding pricing of credit on the last working day of every quarter. RBI sets the average base rate for NBFC-MFIs on the basis of average of base rate of the five largest commercial banks.

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