Microfinance
Latest news, explainers and analysis on Microfinance. Tracking 8 stories on Arth Vani.
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Latest on Microfinance
Indian Microfinance Sector Faces Deepening Funding Imbalance
Recent reports indicate a growing funding skew within India's microfinance sector, suggesting an uneven distribution of capital access among institutions. This trend could impact the ability of certain microfinance entities to lend, though specific details and the extent of the imbalance are not detailed in the available information.
BreakingCrisil: Small Finance Banks' Asset Quality to Significantly Improve by March 2027
Small finance banks (SFBs) in India are projected to see a notable improvement in their asset quality, with Gross Non-Performing Assets (GNPA) expected to fall by 120 basis points by March 2027. This positive outlook, according to Crisil, is driven by a recovery in microfinance portfolios and more stringent underwriting practices.
Indian Microfinance Stress Easing as Multi-Loan Borrowers Decline
The Indian microfinance sector is showing signs of recovery as the number of borrowers holding multiple loans has significantly decreased. This reduction is helping ease overall debt stress, despite these borrowers still carrying substantial outstanding debt.
Government's ₹20,000 Crore Credit Guarantee Scheme Sees Only 17% Disbursement
Banks have disbursed a mere 17% of the funds under the government's ₹20,000 crore credit guarantee scheme, designed to support the microfinance sector. Only about ₹1,000 crore has reached small and medium microfinance entities, as banks remain cautious and larger microfinance companies are hesitant to borrow.
BreakingIndian Microfinance Loans Dip 4% to ₹3.26 Lakh Crore by June End Amidst Monsoon Concerns
India's microfinance sector saw its loan portfolio contract by 4% to ₹3.26 lakh crore by the end of June. This first-quarter decline is primarily due to an uneven monsoon season, which has dampened rural demand and increased caution among lenders.
BreakingIndian Microfinance Sector Shrinks 4% to ₹3.26 Lakh Crore Amid Uneven Monsoon
India's microfinance sector experienced a 4% contraction in its loan portfolio, settling at ₹3.26 lakh crore by the end of June. This downturn, observed in the first quarter of the current financial year, is primarily attributed to an erratic monsoon season which has dampened rural demand and led to increased caution among lenders. The slowdown comes after a period of recovery and highlights the microfinance sector's sensitivity to agricultural conditions and rural economic health.
First-Time Borrowers Hit as Microfinance Lenders Prioritize Safety Over New Growth
Microfinance lenders in India are becoming increasingly cautious, making it harder for individuals without a credit history to secure loans. A recent SIDBI-Equifax study reveals that the share of first-time borrowers has plummeted from 33% to just 20% as lenders focus on customers with proven repayment records.
Rural Debt Under Pressure: Erratic Monsoon Threatens Microfinance Stability
India's microfinance sector faces a dual threat from unpredictable weather and global geopolitical tensions, putting rural borrowers at risk. Industry experts warn that these factors could reverse recent gains in loan repayment quality and tighten credit access for low-income households.
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