Loans
Latest news, explainers and analysis on Loans. Tracking 3 stories on Arth Vani.
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Latest on Loans
BreakingIndian Microfinance Sector Shrinks 4% to ₹3.26 Lakh Crore Amid Uneven Monsoon
India's microfinance sector experienced a 4% contraction in its loan portfolio, settling at ₹3.26 lakh crore by the end of June. This downturn, observed in the first quarter of the current financial year, is primarily attributed to an erratic monsoon season which has dampened rural demand and led to increased caution among lenders. The slowdown comes after a period of recovery and highlights the microfinance sector's sensitivity to agricultural conditions and rural economic health.
RBI Bond Buyback Gets Muted Response, But Loan Rates Could Ease
The Reserve Bank of India's attempt to buy back government bonds received a lukewarm response from banks, despite a cash crunch in the system. However, the benchmark 10-year government bond yield has fallen to its lowest since March, driven by cheaper oil and strong foreign investments. This trend could signal potential relief for borrowers and adjustments for savers.
First-Time Borrowers Hit as Microfinance Lenders Prioritize Safety Over New Growth
Microfinance lenders in India are becoming increasingly cautious, making it harder for individuals without a credit history to secure loans. A recent SIDBI-Equifax study reveals that the share of first-time borrowers has plummeted from 33% to just 20% as lenders focus on customers with proven repayment records.
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