The stock jumped 6.37 per cent to settle at Rs 425.65 on BSE. Intra-day, it surged 7 per cent to Rs 428.40.
At NSE, shares of the company rose 6.52 per cent to Rs 428.90.
This is the first refinance limit sanctioned to the firm by Mudra, a company release said.
"At a rate of 10 per cent, this is lower than regular term loans from conventional lenders, and reinforces our assertion in the recent past that the non banking financial company - micro finance institution (NBFC-MFI) structure does not preclude us from availing dedicated refinance lines at a lower rate of interest," SKS Microfinance President Dilli Raj said.
The company has seen an overall reduction of 3.8 per cent in cost of its interest-bearing liabilities since October 2014.
Mudra was set up by the government for development and refinancing activities relating to micro enterprise units.