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Credit flow to bottom tier slows as microfinance lenders turn to safer borrowers: SIDBI-Equifax

As reported by Stocks-Markets-Economic Times
Credit access for bottom-of-the-pyramid borrowers in India has slowed as microfinance lenders turn cautious after two years of asset quality stress, increasingly favouring customers with established credit histories. A joint SIDBI-Equifax study shows the share of new-to-credit borrowers fell sharply to 20% from 33% three years ago, reflecting tighter risk filters.
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Microfinance lenders in India are becoming more cautious, significantly reducing credit access for bottom-of-the-pyramid borrowers. This shift follows two years of asset quality stress, leading lenders to increasingly favor customers with established credit histories. A joint…

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