Weak Rains Cloud Recovery in India's ₹3.3 Lakh Crore Microfinance Sector
India's microfinance sector, valued at ₹3.30 lakh crore, faces credit risks due to inconsistent rainfall and drought in key states like Karnataka and Maharashtra. These weather challenges impact the agricultural economy linked to rural borrowers. Some institutions are cautiously monitoring high-risk areas, but the absence of loan protection increases financial vulnerabilities in the sector.
ET Markets·


