Default clouds hover over microfinance as industry flags weak monsoon (opens original article in a new tab)

India's microfinance sector faces credit risk from weak monsoon and geopolitical tensions, though recent data shows improved loan disbursement and asset quality.

• India's microfinance sector faces credit risk due to weak monsoon and West Asia conflict
• IMD predicts below-normal rainfall for June-September due to El Nino
• Microfinance loan disbursement hit ₹77,524 crore in Q4, highest in eight quarters
• Credit guarantee scheme extended to August 2026 to improve bank fund flow