Mumbai: In line with falling lending rates, Reserve Bank on Thursday fixed base rate or the minimum lending rate at 9.45 per cent for NBFC Micro Finance Institutions (MFIs).
The new base rate is effective from quarter beginning January 1, RBI said in a statement.
Base rate is the minimum lending rate below which an MFI cannot lend.
It may be recalled that the Reserve Bank had last year said it will advise the average of the base rates of the five largest commercial banks on the last working day of every quarter, for the purpose of arriving at the interest rates to be charged by an NBFC-MFI to its borrowers in the ensuing quarter.
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