NPLs in microfinance segment to peak by FY26 end: S&P Global Ratings

Quick Summary:

The non-performing loan ratio in the microloans segment is expected to peak by the financial year that ends March 31, 2026.

This is why the MFIN began capping lenders last August and will tighten this further starting in April 2025.

India's poorest borrowers have leveraged up in the past few years in response to easing microfinance rules.

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Article Details

Category: BusinessFinance

Markets: India

Topics: Asset quality strain Microloans India Financial inclusion Financial year 2026 Borrower leverage NBFC-MFI Credit quality Microfinance regulations Non-performing loans RBI norms Lending risk Microfinance lending norms Indian financial sector Banking regulations

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-03-26 @ 17:47:36 (3 days ago)

News Timezone: GMT +5:00

News Source URL: business-standard.com

Language: English

Article Length: 366 words

Reading Time: 3 minutes read

Sentences: 17 lines

Sentence Length: 22 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Business Standard

News ID: 27352122

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