Indian financial press / NBFC funding
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Business Standard · India · India's microfinance sector under stress: long-term delinquencies double, government launches ₹20,000 crore guarantee scheme
Post-CGSMFI-2.0 analysis: the government lifeline restores partial lender confidence but Crisil and ICRA maintain negative sector outlooks. Mid-sized and emerging NBFCs still face elevated funding costs; the guarantee does not cover existing impaired portfolios, only new lending. Customer over-leverage (borrowers with loans from 5+ lenders) remains the structural problem.
“Microfinance was thrown a lifeline with the CGSMFI-2.0 scheme, but persistent customer over-leverage and a Crisil negative outlook mean it is not yet out of the woods.”