Rs 15800 crore microfinance risk rises as overleveraged borrowers juggle multiple loans and defaults

Many borrowers cannot even qualify for new loans

Microfinance is turning into a double-edged sword as borrowers carrying multiple loans build up an estimated Rs 15,800 crore in debt. With repayments getting harder, these highly leveraged individuals often become ineligible for additional credit, tightening their cash flow and raising the odds of defaults across the microfinance sector.