 "Borrowers with microfinance, retail overlap have higher delinquency: CRIF")
Around 14.3 per cent of live microfinance borrowers held active retail loans as of September 2024. Among these, approximately 37 per cent were in the 30+ days past due (DPD) category for either their microfinance or retail loans, or both, according to a report by CRIF.
The report highlighted that borrowers with an overlap of microfinance and retail loans exhibited higher delinquency rates compared to those with only microfinance loans.
Meanwhile, the microfinance portfolio declined by 4.4 per cent, reaching Rs 4.14 trillion as of September, compared to June. The September quarter also saw a further increase in delinquencies across all DPD bands.
The rise in delinquencies was observed across all ticket sizes and lender types, with the trend being particularly pronounced in the top ten states.