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Micro lenders diversify into secured loans to negate asset quality pressures
Business Standard
|March 14, 2026
Microfinance institutions (MFIs), which face asset quality headwindstimeandagain mainly duetoexternal shocks, arediversifying their loan book by focusing more on secured products like gold and mortgage.
Microfinance institutions (MFIs), which face asset quality headwindstimeandagain mainly duetoexternal shocks, arediversifying their loan book by focusing more on secured products like gold and mortgage.
The move comes after the NI Reserve Bank of India (RBI) relaxed the minimum qualifying asset (QA) requirement for MFIsto 60 percent of total assets from 75 percent.
Data compiled from October-December quarter numbers shows MFIslike CreditAccess Grameen, Satin Creditcare, and Spandana Sphoorthy have cut down their micro loan book significantly this year. These lenders are increasingly expanding into segments such as micro, small, and medium enterprise (MSME) loans, loan against property (LAP), affordable housing finance, and vehicle loans to diversify their portfolio.
This story is from the March 14, 2026 edition of Business Standard.
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