Capital crunch, poor asset quality topple small microfinance institutions
Published on: Nov. 19, 2025, 4:30 a.m. | Source: The Economic Times
Several Indian microfinance companies are defaulting on bank loans due to asset quality stress and funding crunches, threatening the survival of smaller lenders. VFS Capital, Navachetana Microfin Services, and Arth Finance are among those facing defaults, highlighting a liquidity crisis impacting the sector.
