Sa-Dhan reaches out to individual lenders to open the liquidity tap for small and medium MFIs

MFIs faced headwinds in FY25 due to, among other things, borrower over-indebtedness (a result of competitive lending, where multiple lenders lend to the same borrower), strained repayment capacities and recovery challenges | Photo credit: iStockphoto Sa-Dhan is reaching out to individual banks and financial institutions to get them to lend to small and medium microfinance […]

The self -regulating authorities of MFIs are looking for credit guarantee fund

Mfin and SA-Dhan have cited the success of the COVID period Scheme of the government for MFIs, which offered a 75% guarantee on financing extended by member loan institutions (MLIs) to NBFC-MFIS/MFIs for further on-lending to be eligible for eligible small borrowers | Photocredit: Getty images To encourage banks to increase lending to the non-bank […]