India’s microfinance bubble grew 2,100%. Now a bust looms

Andy MukherjeeBloomberg
Apr 4, 2025 | 15:18 IST

Multiple lenders are chasing the same borrowers amid stagnant incomes at the bottom of the pyramid



Subprime loans in India are teetering on the edge of a fresh crisis, with surveys showing signs of distress among 68% of borrowers. Those who have provided the capital for a multiyear 2,100% expansion will have to stomach losses. The $45bn industry will probably muddle through its latest difficulties, though analysts want the central bank to come up with more robust supervision.
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