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Microfinance sector heading for a bumpy ride as bad loans mount
The Morning Standard
|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.
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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