Microfinance sector under stress as portfolio at risk doubles despite lending caps
Asset quality concerns in the microfinance sector continue even as they have voluntarily capped borrowers’ access to a maximum of three lenders beginning this fiscal year. Data released by the Microfinance Institutions Network (MFIN) show Portfolio at Risk (PaR) in the 31–180 day bucket rose to 5.4% at the end of June 2025, compared with…