Rapid growth of microfinance industry leading to risks of over-borrowing

There has been a spike in loan ticket sizes in the past two years, and a rise in the loan outstandings of borrowers approaching more than one lender

The rapid growth of the microfinance industry is leading to a scenario of over-borrowing on the part of loan seekers, putting the sector a considerable risk.

According to data collated by CRIF High Mark, during the past two years, there has been a spike in the average microfinance loan ticket size, along with a number of borrowers seeking loans from multiple entities.