Report: India’s Microfinance Sector Seeing Increasing Risk of Overleverage
Wednesday, April 24, 2019
By Shayan Ghosh
The risk of over-leveraging in the microfinance sector has increased owing to the changing landscape of the sector, varying interpretation of the RBI guidelines as well as some gaps in the credit bureau data, said credit rating agency Icra on Tuesday.
Icra said in a statement that an analysis of the portfolio of micro finance institutions (MFIs) reveals that the ticket sizes and loan tenures are rising.
An Icra study of over 35 MFIs and small finance banks (SFBs) showed that around 12% of the portfolio was at ticket sizes greater than ₹40,000 as of December 2018.
Photo courtesy of Peter Haden.
Source: Livemint (link opens in a new window)
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