Microfinance sector heading for a bumpy ride as bad loans mount
The New Indian Express|August 28, 2024
THE microfinance sector is headed for a bumpy ride with overleveraged borrowers missing installments, forcing the lenders to go slow on new loan sales in the first quarter of the current fiscal.
BENN KOCHUVEEDAN
Microfinance sector heading for a bumpy ride as bad loans mount

There has been a steep 24% drop in disbursals, came on top of the 30% plunge in the previous quarter.

In the June quarter, MFIs saw their collections falling, leading to higher delinquencies as well as a slowdown in the growth of assets under management, which is 24% in the reporting quarter, came in on top of a 30% fall in new loan sales in the March quarter, India Ratings said in a report on Tuesday.

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