Fusion Microfinance reduces interest rate to 23% for existing customers
Fusion Microfinance Pvt Ltd, a leading NBFC-MFI in India, has reduced its current lending rate of interest on loan disbursement for all customers. The rate of interest for their existing customers have been reduced by 140 basis points to 23% from 24.4% earlier. New customers will be able to avail loans at 23.5% now instead of previous 24.6% rate. The new rate of interest will be effective from 1st June, 2018. The company had last reduced its rate in November, 2016 by 100 basis points.
On the lending rates offered by the company Devesh Sachdev, Founder and CEO, Fusion Microfinance said, “Fusion being RBI regulated, charges interest rate on reducing balance basis, which means a customer with a one year loan of Rs 12,000 pays around Rs 1,400 as total interest. This is often overlooked as people assume the effective rate to be flat rate of interest. Microfinance interest rates in India are amongst the lowest in the world. We are committed to bring this down further with decrease in cost of borrowings and increasing efficiencies.”
Speaking about the company’s growth Tarun Mehndiratta, COO, Fusion Microfinance added, “Fusion has been on a rapid growth path over the last few years and we are focusing on building a solid infratsructure and services platform calibrated to support the next phase of expansion. We are very hopeful that the reduced rates will enable us to increase our customer base and help us provide better value to our existing customers.”
Fusion Microfinance Pvt Ltd is an NBFC – MFI which provides financial services to the underprivileged and underserved women entrepreneurs living in the rural and semi-urban areas. As on May 2018, the company has Gross Loan Portfolio of around INR 1600 crore and operations in 16 states namely Madhya Pradesh, Uttarakhand, Uttar Pradesh, Haryana, Delhi, Bihar, Jharkhand, Orissa, Punjab, Chhattisgarh, Maharashtra, Assam and Tamil Nadu among others. Currently, it has 389 branches with more than 1 million active loan clients.
In Q4 FY 2018, Fusion Microfinance registered around 70% YoY growth in the Gross Loan Portfolio. Earlier this year, the company successfully closed Series E funding of Rs 80 Crore.