Hyderabad-based SKS Microfinance on Tuesday said it was reducing interest rates and would charge 24.55 per cent per annum from all categories of small borrowers.
"The company will not collect charges towards credit shield charge, loan processing fee, and card fee with effect from January 11. With this all effective interest rate across country will be 24.55 per cent for all future disbursements," it said in a filing to stock exchanges - National Stock Exchange and Bombay Stock Exchange.
SKS Microfinance, which has been in the news for sacking its MD & CEO Suresh Gurumani and allegedly using coercive methods for recovery of loan, used to charge about 28-31 per cent interest from small borrowers.
According to state government officials, about 30 people reportedly committed suicide in Andhra Pradesh during September-October last year due to harassment by microfinance companies.
The spate of suicides and report of harassment by microfinance companies had prompted the Andhra Pradesh government to come out with an Ordinance to put a check on the activities of the microfinance companies.
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