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EPFO Likely to Cut Interest Rate by 15-25bps

EPFO likely to cut interest rate by 15-25bps.

 

CONSUMER INTEREST

EPFO likely to cut interest rate by 15-25bps.

Rates Slashed: The Employees’ Provident Fund Organisation (EPFO) is likely to reduce the interest rate offered to its subscribers by 15-25 basis points for this fiscal, as per sources. 

 

EPFO is likely to announce the revised interest rate by January 31 post meetings with its investment officials, Central Board of Trustees and the executive committee members.

 

The decisions to lower the interest rate has been taken in wake of the economic downturn, lower yields on debt- market instruments and lower interest rates on similar offerings such as the public provident fund and government provident fund. 

 

Earlier last year, on October 9, the EPFO had hiked the interest rate to 8.65% for the financial year 2018-19. Livemint

 

Extra Bite: Traditionally, while it has been easier for individuals with income proofs and a healthy credit score to get loans, many others such as gig workers, part-time workers, freelancers or young students, who have never accessed any credit struggle rather hard to avail loans. However things are soon changing around the bloc - many new-age lenders are coming up with innovative tools to provide lending to hitherto unattended segment of borrowers. Read more on these players here.

FIN.

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