New Delhi, Nov. 9: SKS Microfinance said on Tuesday that it was planning to cut interest rates to 24 per cent across all states, after an ordinance passed by Andhra Pradesh imposed serious restrictions on its business model.
The latest move follows the company’s announcement last month that it had cut its annual rate of interest to 24.55 per cent from 26.69 per cent effective immediately in Andhra Pradesh.“The ordinance and its implementation will have material impact on the company’s operations in Andhra Pradesh,”
India’s largest microlender SKS Microfinance said in a statement.
The state contributes 28 per cent of the current loan portfolio of the company in the country.