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NBFCs go easy on MSMEs as bad loans begin to bite
Mint Bangalore
|November 18, 2025
Top NBFCs turn cautious as weakness in MSME sector reflects in repayments
Non-bank lenders are turning cautious on lending to small enterprises, as defaults rise following a lending spree to borrowers with weak credit profiles.
Bajaj Finance, IIFL Finance, Shriram Finance and Ugro Capital are among lenders that have slowed the growth of collateral-free lending to micro, small and medium enterprises (MSME) in the September quarter. A clear shift is emerging: more secured loans, closer scrutiny of borrowers, and more cash to cover potential loan losses.
This story is from the November 18, 2025 edition of Mint Bangalore.
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