The microfinance company has reduced rates by 300 basis points in last 18 months
· The rate is effective from 1st October 2016
Asirvad Microfinance Pvt Ltd, a Chennai based Microfinance Company, has announced reduction in its interest rates and will now be providing microfinance loans at 23%. The new rate of interest is effective from 1st October 2016.
Speaking on the announcement, S.V. Raja Vaidyanathan, Founder Chairman and Managing Director, Asirvad Micro Finance Private Ltd. said, “We have dropped rates by 300 basis points in the last 18 months and have now come down to 23% from 26% in April 2015. We are targeting to reduce our interest rates to as low as 20% in the coming 18 months. Our aim is to cater to our customers through providing micro credit at lowest possible rates while maintaining healthy growth of the company.”
Supporting Asirvad Microfinance’s move to reduce lending rates, Ratna Vishwanathan, CEO, Microfinance Institutions Network (MFIN) said,” The lending rate cut by Asirvad Microfinace is a welcome move. Microfinance is today seen as a responsible sector and with NPAs less than 1% funding in the sector has improved from earlier. In an industry like microfinance, interest rates assume a greater significance as clients are from the low income households. The industry collectively is striving to make the clients its focus which is evident from the rate cuts by other microfinance companies too in the recent past.”
Asirvad Microfinance has recently been given ‘A+’ rating by credit agency Crisil which is the highest rating given by the agency to any microfinance company. This is a positive sign for the industry as the rating agencies have started acknowledging microfinance sector as a robust and stable sector. This will also lead to better flow of funds for the sector from banks and other institutions at lower rates.
Headquartered at Chennai, Asirvad Microfinance Ltd started operations from 2007 and is a part of Mannapuram Finance Ltd. The company aspires to develop and make use of innovative technology to deliver its services and enrich the community at large. Its network is spread through 13 states and has currently 431 branches in these regions which include Punjab, Haryana, Chandigarh, Uttar Pradesh, Madhya Pradesh, Bihar, Jharkhand, Chattisgarh, West Bengal, Karnataka, Kerala, Tamil Nadu and Puducherry. It is also a member of Microfinance Institutions Network.
Non-banking financial company – micro finance institutions (NBFC-MFIs) have continuously worked towards ensuring access to easy finance to the needy customer in a responsible and inclusive way. Microfinance Institutions Network (MFIN), the premier industry association and Self-Regulatory Organisation (SRO) for the microfinance industry in India works towards ensuring fulfilling of these twin responsibilities of client protection and responsible lending by its member NBFC-MFIs.
About Microfinance Institutions Network
Microfinance Institutions Network (MFIN) is the premier industry association and Self-Regulatory Organisation (SRO) for the microfinance industry in India and its current membership consists of 47 leading NBFC (Non-banking Financial Company) Microfinance Institutions (MFIs) in the country. The aggregate business of MFIN members constitutes over 85 per cent of the Indian microfinance industry (excluding SHGs). MFIN seeks to work closely with regulators and other key stakeholders to achieve larger financial inclusions goals through microfinance.