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Bandhan Bank slashes micro loan rates below 18%

The new lending rate will be applicable to new loans from June 18, 2019, the bank said Monday.

, ET Bureau|
Jun 17, 2019, 08.12 PM IST
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Bandhan-Bank
The Kolkata-based lender operates across 34 states and union territories through a network of 998 branches.
Bandhan Bank has reduced micro loan interest rate by 70 basis points to 17.95%, making it the the first private sector lenders to cut rates below 18% level.

The new lending rate will be applicable to new loans from June 18, 2019, the bank said Monday.

"With the reduction in microloan interest rate, more people will find it affordable to borrow money and build sustainable livelihoods for themselves,” Bandhan Bank Managing Director Chandra Shekhar Ghosh said.

Among other micro loan givers, Bharat Financial Inclusion and Ananya Birla promoted Svatantra Microfin Pvt Ltd have lending rates below 20% while most lenders charge anything between 22-24%.

Since Bandhan started operations as a bank in August 2015, it has lowered micro loan rates by 445 bps from 22.40%. One basis point is one-hundredth of one percentage point.

The Kolkata-based lender operates across 34 states and union territories through a network of 998 branches, 3,014 doorstep service centres. The bank has over 1.65 crore customers on its books, catered by 32,342 employees.

It has deposits worth Rs 43,232 crore at the end of March while its loan book stood at Rs 44,776 crore.
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