Ujjivan Small Finance Bank (Ujjivan) has announced competitive interest rates on microfinance and individual loans, reinforcing its commitment to financial inclusion. By lowering lending rates, the bank aims to provide affordable credit to underserved communities, ensuring broader financial accessibility across India.
The Indian microfinance industry has witnessed significant transformation, with Small Finance Banks (SFBs) playing a crucial role in providing credit to micro-entrepreneurs and low-income households. Recent regulatory changes introduced by the Microfinance Institutions Network (MFIN) have capped the number of lenders serving a single borrower to four, with further restrictions to three from April 2025. In response, Ujjivan has adopted responsible lending practices, ensuring that borrowers do not fall into excessive debt. The bank continues to pass on the benefits of lower interest rates to customers, promoting affordability and responsible banking.
With India’s economic structure shifting towards a stronger middle-income segment, the demand for tailored financial products is rising. Ujjivan is strategically positioning itself to serve this expanding demographic while maintaining support for lower-income households, aligning with the country’s evolving financial landscape. In Siliguri, a key market for microfinance, Ujjivan’s competitive loan offerings are expected to benefit small businesses and entrepreneurs who rely on affordable credit to expand operations. The city’s growing commercial activity makes it a crucial hub for microfinance.
