SKS Microfinance to charge 1% processing fee

SKS Microfinance to charge 1% processing fee
SKS Microfinance, non banking financing company (NBFC), has announced that the company will charge 1% processing fee to bring in more transparency. This amount will be collected from the borrower without any administrative charges.

Under new law MFI can levy only three charges namely processing fee not exceeding 1 per cent of total amount, interest and insurance charge for any amount of microfinance loans extended to self help group or individuals.

SKS Microfinance is fighting case against Andhra Pradesh microfinance act that restricts the companies offering micro loans from offering multiple loans to single person or group, charging more than fixed interest rate of 26% and using coercive methods in loan recovery.

Read more about: sks microfinance, nbfc, bse, nse
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