The Reserve Bank of India (RBI), on September 30, said the applicable average base rate to be charged by Non-Banking Financial Company – Micro Finance Institutions (NBFC-MFIs) to their borrowers for the quarter beginning October 1, 2021 will be 7.95 per cent.
The rate has been cut compared with 7.98 percent set for the September quarter.
“The Reserve Bank of India has today communicated that the applicable average base rate to be charged by Non-Banking Financial Company – Micro Finance Institutions (NBFC-MFIs) to their borrowers for the quarter beginning October 1, 2021 will be 7.95 per cent,” the RBI said in a release.
On the last working day of every quarter, the RBI advises the average of the base rates of the five largest commercial banks for the purpose of arriving at the interest rates to be charged by NBFC-MFIs to their borrowers in the ensuing quarter.
In February, 2014, the RBI had said that the interest rates charged by an NBFC-MFI to its borrowers will be the lower of the cost of funds plus margin or the average base rate of the five largest commercial banks by assets multiplied by 2.75.
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