India’s microfinance overhang is finally easing as debt-stressed borrowers fall
- Posted on August 17, 2026
- By Business News Today
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- 1 min read
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India’s microfinance overhang is finally easing as debt-stressed borrowers fall
The number of microfinance borrowers with multiple loans has significantly decreased. These borrowers still hold substantial outstanding loans, posing a higher credit risk. Portfolio at risk for these stretched borrowers is higher than others. The microfinance market saw a record peak in loans outstanding recently. Stricter underwriting practices are helping the sector recover from past challenges.
