SKS Microfinace gets Rs 100 crore from MUDRA

Funds will help company bring down cost of interest-bearing liabilities

MUDRA (Micro Units Development and Refinance Agency) has extended a refinance of Rs 100 crore to microfinance lender SKS Microfinance.

The refinance comes at 10% rate of interest, which is expected to help SKS further bring down the cost of interest-bearing liabilities. SKS has already reduced the cost of its interest-bearing liabilities to 11.9% in the first quarter of the current financial year from 13.6% last year.

With the current funding, the microfinance company could reduce interest rates charged from small borrowers by 3.8% to 20.75% on all disbursements starting from this month, it said in a statement.

"MUDRA is trying to make an impact in funding micro enterprises by making available credit facilities at affordable cost through the existing financial channels," said MUDRA CEO Jiji Mammen.