Muthoot Microfin Announces Lower Interest Rates on Select Loans

Muthoot Microfin Ltd., a leading microfinance institution in India, has announced its third interest rate reduction for 2024. This latest move aims to provide affordable credit to underserved communities, reflecting the company’s commitment to empowering borrowers and fostering economic growth.

New Lending Rates Announced

In a press release on Wednesday, Muthoot Microfin confirmed a 25-basis-point (bps) reduction in interest rates for income-generating loans (IGL), bringing the rate down to 23.05%. For third-party product loans (TPP), the company has reduced rates by 125 bps to 22.7%. The revised rates will apply to all loans sanctioned from Dec. 3, 2024.

This follows two prior reductions earlier in the year, with cuts of 55 bps in January and 35 bps in July. These cumulative reductions underline Muthoot Microfin’s borrower-centric approach to delivering accessible credit solutions.

Commitment to Empowerment and Growth

Highlighting the company’s strategy, CEO Sadaf Sayeed stated, “This rate reduction demonstrates Muthoot Microfin’s aim to foster long-term economic growth and make formal credit accessible.” Managing Director Thomas Muthoot echoed this sentiment, describing the move as part of a long-term strategy to empower customers and transform the microfinance sector.

With a presence in 20 states and 369 districts, the institution serves 3.4 million active customers through its 1,593 branches. This rate adjustment further strengthens its position as a key player in the microfinance sector, driving inclusive financial growth.

Muthoot Microfin Share Performance

As of December 05, 2024, 1:48 PM, shares of Muthoot Microfinance Ltd. are currently trading at ₹193.20 per share with a surge of 1.70% from its previous day’s closing price. Over the last month, the stock has seen a fall of 5.23%. While over the past year, the stock has seen a decline of 29.81%. The stock has a 52-week high and 52-week low of ₹281.00 per share and ₹180.41 per share respectively.

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