Over-leveraged borrowers put Rs 15,800 crore microfinance portfolio at risk

May 12, 2026

Microfinance has become a double-edged sword, with substantial debt levels amassing to about ₹15,800 crore among borrowers juggling multiple loans. These individuals, often in over their heads, face the harsh reality of being ineligible for new loans. As they struggle with repayment, the risk of defaults looms large over the microfinance landscape.

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