Micro Financing Business vs Ceiling on Interest Rates

1 NBFC-MFI (1) The average base rate of five largest commercial banks multiplied by 2.75 per annum
(2) cost of funds plus margin cap of 10% for MFIs having loan portfolio above ` 100 crore
and 12% for those with loan portfolio less than ` 100 crore

The lower of (1) and (2)
2 Nidhi Company Maximum Rate of Interest on Loan = 7.5% + Maximum rate offered on deposits.

3 Multistate cooperative Society Decided and Approved by the Board of Directors

4 NBFC-ND The rate of interest to be charged by the company is governed by the terms and
conditions of the loan agreement entered into between the borrower and the NBFCs

5 Micro Finance Company-Sec-8 (1) The average base rate of five largest commercial banks multiplied by
2.75 per annum
(2)cost of funds plus margin cap of 10% for MFIs having loan portfolio above `
100 crore and 12% for those


The lower of (1) and (2)

 

It was rightly said by Ralph Waldo Emerson– “Every Wall is a Door”
Thus, take a step forward to open the door for the new FDI norms.

Shweta Gupta from MUDS MANAGEMENT is recognized among the most-respected, knowledgeable and yes, pocket-friendly as well. Why not give them a call right now at +91 9911222771 and start a conversation immediately.

By | 2018-06-11T16:23:38+00:00 August 2nd, 2017|Micro Financing|0 Comments

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