Ujjivan Financial Services cuts interest rates by 0.75% with effect from Oct 1

Microfinance institution Ujjivan Financial Services on Thursday announced an interest rate cut of 0.75% on its microfinance loans.

The new rates for all microfinance loans will be effective from October 1 this year. 

However, the company has kept the rates for individual bazaar loans as unchanged. 

Ujjivan Financial Services is in the process of transforming itself into the small finance bank (SFB).

“Ujjivan’s overall robust financial performance, lower borrowing costs and rapid progress in its transformation towards becoming a small finance bank (SFB), has helped us to reduce the interest rates on our products," said Ujjivan Financial Services managing director Samit Ghosh in a filing to the BSE.

We are equally happy to pass on the reduction of interest rate benefit to our valued customers at the onset of the long festive season as a bonanza offer to them, Ghosh added.

Ujjivan Financial Services focus has been to cater to the unbanked urban financially weaker segment. 

The stock of Ujjivan Financial Services closed down 4.81% or Rs 21.80 at Rs 431.10 on the BSE on Thursday.