Microfinance sector tightens lending norms to address asset quality stress

The Microfinance Institutions Network (MFIN) is tightening lending norms for its members to address rising bad loans. These changes include stricter limits on lending to overdue borrowers, reducing the number of lenders per borrower, and capping total indebtedness, including unsecured retail loans. These measures aim to improve the sector's resilience and financial inclusion efforts, taking effect January 2025.