Bangalore-based microfinance firm Grameen Koota Financial Services Pvt. Ltd. (Grameen Koota) has lowered its interest rates by 200 basis points (2 percentage points) for education, water and sanitation loans, as part of its social objective to pass on benefits of low operational costs and reduced borrowing costs to its customers. The new rates of interest came into effect from June 1, 2016.
With this Grameen Koota borrowers will get education, water and sanitation loans at 18%, a significant 200 basis points reduction from 20% which were charged earlier. For the financial year 2016-17, Grameen Koota aims to disburse over Rs 800 crore under socially-focused loan products with the new reduced pricing. Grameen Koota has also reduced the core income generation loan rate by 1% from 23% to 22%.
“Grameen Koota has designed several socially-focused loans aimed at achieving developmental goals of poor and low income households. Our loans for children's primary education, water connection, sanitation, medical and other emergencies mainly serve the purpose. This reduced interest rate will certainly help our customers to plan and avail more loans and also utilize them more efficiently,” said Mr. Udaya Kumar, Grameen Koota’s Managing Director and CEO.
Supporting Grameen Koota's move to reduce interest rates, Paulo Brichetti, CEO of CreditAccess Asia NV, the parent company of Grameen Koota, said, “We are pleased with Grameen Koota's continuous efforts to improve upon operational costs, thus enhancing their ability to provide services at low cost. Keeping in mind our long term relationship with our customers and their welfare, we always encourage our group companies to pass on such benefits as much as possible to our customers.” Headquartered in Bangalore, Grameen Koota has 334 branches serving 1.4 million customers, with plans to add 70 more branches by the end of 2016.
From social performance perspective, Grameen Koota's flagship social awareness program 'Jagruthi' has reached 1.2 million customers as of March 2016. Further, re-certification by Smart Campaign for upholding client protection principles, a Social Rating upgrading to ‘∑α’, a code of conduct adherence rating of 'COCA 1' by SMERA and the MIX S.T.A.R. MFI recognition for its commitment to social performance and pro-poor business – all indicate Grameen Koota's commitment to fulfil both its financial and social development goals.
Courtesy by www.businesswire.com
