MFIN tightens underwriting guidelines for lenders amid over-indebtedness concerns

MFIN has tightened loan underwriting guidelines to address borrower over-indebtedness. Uniform treatment measures will help lenders with a robust policy for bullet repayments and missing EMIs. This follows RBI's mandate to ensure monthly repayment obligations don't exceed 50% of household income. Analysts warn tightened practices may impact asset quality and loan growth.