Mfi

Recordent launches credit registry for non-profit MFIs to curb defaults

Fintech company Recordent has launched a shared credit information platform for not-for-profit microfinance institutions (MFIs), aiming to help lenders identify borrowers with multiple loans and curb over-indebtedness. The MFI Credit Registry will allow Section 8 MFIs-non-profit lenders that provide small-ticket loans primarily to low-income households-to share borrower loan and repayment data through a common platform before sanctioning fresh credit, an official said. Unlike larger microfinance companies that have wider access to borrower information, many Section 8 MFIs have limited visibility into customers' existing loans, increasing the risk of multiple borrowings and loan defaults, the company said. Recordent CEO and Co-Founder Winny Patro said Section 8 MFIs, which operate as not-for-profit entities, currently manage an estimated Rs 4,000 crore of assets. The company said the registry has already been used with 10 Section 8 MFIs, and the results have been encouraging. Devel

Early delinquency rate in MFI drops sharply to 2.3%: Equifax India

This trend suggests that lenders are prioritising credit discipline over growth, particularly in a macro environment marked by cautious lending

Microfinance business thrown a lifeline but still not out of the woods

The microfinance business will remain cautious for some time to come despite a ₹20,000 cr credit guarantee scheme

Sa-Dhan unveils Sankalp 3.0 to boost governance, risk in microfinance

Sa-Dhan launches Sankalp 3.0 guardrails to improve governance, risk management and customer protection in microfinance sector amid improving asset quality

MFI guarantee scheme offers relief, but sector faces key challenges

Centre's credit-guarantee scheme offers temporary relief to microfinance institutions, but sustainable recovery will depend on improved lending practices, risk management, and sector discipline

Bihar MFI bill may disrupt operations, delay recoveries, say analysts

Analysts warn Bihar's proposed microfinance regulation could disrupt lending operations, weaken borrower credit discipline, and delay recoveries for NBFC-MFIs, banks and small finance banks

Wanted: A new model for microfinance as MFIs explore secured products

Some MFIs are turning into business correspondents. They are also looking for more secured loans, one of the products being loan against gold

BS BFSI Insight Summit: SFBs' MFI stress set to ease in 2-3 quarters

While SFBs have grown rapidly over the past few years, their microfinance portfolios have affected asset quality

NBFC-MFIs' bad loans seen falling to 3.6% by March 2026: CareEdge

The decline in bad loans will be driven by write-offs and tighter lending norms, though credit costs are expected to remain elevated in FY26, says CareEdge Ratings

Microfinance recovery may be delayed by a quarter as stress persists

The fall in new delinquencies in the microfinance industry has slowed, delaying recovery by a quarter, with meaningful earnings growth expected only from Q4 FY26 or FY27

India Ratings downgrades Spandana Sphoorty's debentures, loans to BBB+

Profitability under pressure due to high credit costs

Regret not insuring MFI business from start: IDFC Bank CEO Vaidyanathan

IDFC First Bank chief says not insuring the microfinance portfolio earlier worsened FY25 losses but confirms that 66 per cent of the book is now covered under CGFMU

MFI collection efficiency back at 99.6%: L&T Finance MD & CEO Sudipta Roy

Sudipta Roy said that the transfer of the gold business of Paul Merchants Finance will be completed by June 15

IndusInd Bank fiasco: ₹674 cr wrongly booked as interest in MFI biz

IAD also flags ₹595 crore of unsubstantiated balances in "other assets", as whistleblower complaint prompts deep dive into IndusInd Bank's microfinance portfolio

Rising micro loan stress: Lenders tap digital debt collection platforms

Spocto X and Credgenics are end-to-end debt collection platforms focused on digitizing the entire collection process

Microfinance loan book shrinks 3.5% to Rs 3.85 trillion in Dec quarter

Share of overdue loans shoots to 6.4%

K'taka microfinance ordinance effect: MFI loan disbursements may slow down

The assets under management (AUM) of microfinance institutions (MFIs) in the state stood at Rs 60,000 crore at the end of March 2024

Microfinance sector stress cyclical, pushing up NPAs, says SBI official

The dealing with internal factors would mean entities require more discipline and emphasis on corporate governance and compliance

FinMin meet: MFI representatives seek lowering of asset qualification norms

In 2022, the RBI updated regulations for MFIs, which now apply to all entities in the sector, including banks, small finance banks, and non-banking financial companies (NBFCs)

ARCs open to acquiring non-performing MFI loans, but only at right price

Industry-wide stress in the microfinance sector has built up due to unchecked credit growth and multiple loan disbursements to the same customers, resulting in overleveraging among borrowers