Muthoot Microfin Cuts Lending Rates for Third Time in 2024

5th December 2024: Muthoot Microfin (NSE: MUTHOOTMF, BSE: 544055), a leading microfinance institution headquartered in Kerala, has announced its third interest rate reduction of the year, furthering its goal of making financial services more accessible and affordable. The microfinance institution has reduced lending rates by 25 bps for income-generating loans (IGL) and by 125 bps for third-party product loans (TPP).
The latest rate cut follows earlier reductions of 55 bps in January 2024 and 35 bps in July 2024, underscoring Muthoot Microfin’s commitment to passing on the benefits of reduced funding costs to its borrowers. The new interest rate for IGL is 23.05% and for TPP is 22.70%. These revised rates will be applicable for loans sanctioned from 3rd December 2024.

Commenting on this development, Mr. Sadaf Sayeed, CEO, Muthoot Microfin, said, “This latest rate reduction demonstrates our focus on fostering long-term economic growth and making formal credit accessible. By reducing borrowing costs, we envision an even greater impact on rural entrepreneurship and women’s empowerment in the coming years. With such borrower-first initiatives, Muthoot Microfin aims to remain at the forefront of making affordable credit solutions accessible to underserved communities.”

Mr. Thomas Muthoot, MD, Muthoot Microfin, added, “Our commitment to financial inclusion goes hand in hand with innovation and operational excellence. These rate cuts reaffirm our long-term strategy of empowering our customers and driving transformative change in the microfinance sector.”

Muthoot Microfin currently serves 3.4 million active customers through 1,593 branches across 20 states and 369 districts, reinforcing its position as a leading player in the microfinance sector.