Kolkata, Jun 17 (IANS): Bandhan Bank on Monday said it would reduce its microloan interest rate by 70 basis points (bps) to 17.95 per cent, which would be applicable to new disbursements from June 18.
"This reduction would bring down the effective interest rate on microloans to 17.95 per cent from the current 18.65 per cent," the lender said in a statement.
In last four years since the Kolkata-headquartered lender began operations as a bank, it has reduced microloan rates by 445 bps or 4.45 per cent to 17.95 per cent from 22.40 per cent.
Bandhan Bank MD and CEO Chandra Shekhar Ghosh said: "I believe, with the reduction in microloan interest rate, more people will find it affordable to borrow money and build sustainable livelihoods for themselves."