Taking loan from NBFCs, MFIs? You need to pay at least this interest from July 1

Taking loan from NBFCs, MFIs? You need to pay at least this interest from July 1

Loan seekers from non-banking financial companies (NBFCs) and microfinance institutions will have to pay at least 9.18% interest. The Reserve Bank of India (RBI) has asked these lenders to set an average base rate of 9.18 per cent. The NBFCs and MFIs will have to charge this rate from their customers for the quarter beginning July 1. RBI said on Friday, “The applicable average base rate to be charged by non-banking financial companies and microfinance institutions (NBFC-MFIs) to their borrowers for the quarter beginning July 1, 2019, will be 9.18 per cent.”

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

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Source:-zeebiz

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