The Microcredit Regulatory Authority (MRA) has slashed the service charge of the micro-finance institutions (MFIs) on microcredit to 24 per cent from the existing 27 per cent.
The regulator issued a circular in this regard on September 9.
From now on, the MFIs can charge a maximum of 24 per cent as per 'reducing balance method', according to the circular.
The reduction in service charge for microcredit would benefit the poor borrowers, said a director of the MRA.
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