ZAMINDAR Banks - Banks also charge the poor high interest rates
KOLKATA: When it comes to lending to the poor, it's not just the micro finance institutions (MFIs) that charge high interest rates, but also bulge-bracket banks such as Axis BankBSE 1.35 % and YES Bank, which charge as much as 22-26% a year. This is the trend that has emerged after the Reserve Bank of India (RBI) allowed banks to engage microfinance institutions (MFIs) as business correspondents in June this year. Banks have access to low cost deposits, unlike MFIs, giving
the giving them access to lower cost of funds, but that does not translate into lower lending rates. In reality, private banks charge as much as micro lenders such as Bandhan Financial Services or SKS Microfinance do.
the giving them access to lower cost of funds, but that does not translate into lower lending rates. In reality, private banks charge as much as micro lenders such as Bandhan Financial Services or SKS Microfinance do.
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http://economictimes.indiatimes.com/articleshow/45354900.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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