02-April-2025
Banking
 
Three-lender cap rule for microfinance from April 1, further stress likely in short term
31-Mar-2025

Microfinance lenders, both banks and non-banks, are gearing up to follow a new rule that caps a borrower’s access to a maximum of three lenders from April 1. The limit is aimed at stopping overleveraging, often blamed for the current sectoral stress. This move is likely to escalate the pain for both lenders and borrowers immediately, although the rule should bring credit discipline back in the long run, industry captains said.

News Source:- https://economictimes.indiatimes.com/industry/banking/finance/three-lender-cap-rule-for-microfinance-from-april-1-further-stress-likely-in-short-term/articleshow/119756105.cms
 
 
 

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