The Reserve Bank of India (RBI) has prescribed the applicable average base rate to be charged by Non-Banking Financial Company – Micro Finance Institutions (NBFC-MFIs).
From the quarter beginning 1st January, 2021 NBFC- MFIs will charge 7.96 percent as average base rate to their borrowers.
Earlier, RBI had issued circular to NBFC-MFIs regarding pricing of credit, stated that it will, on the last working day of every quarter, advise the average of the base rates of the five largest commercial banks for the purpose of arriving at the interest rates to be charged by NBFC-MFIs to their borrowers in the ensuing quarter.
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