While microfinance institutions (MFI) are yet to tide over the impact of currency demonetisation, intense competition and reports of over-borrowing have surfaced as new grey areas.
At least two recent reports, one by CRIF High Mark and another by ICRA, say MFIs are showing signs of over-leveraging.
CRIF High Mark says of about 42 million unique MFI customers, six per cent have loans with more than two lenders. And, a third of these customers have active loans with more than two non-bank MFIs (NBFC-MFIs). Further, the report says, 70 per cent of such borrowers have three or more loans;
