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MFIs, SFBs may face the heat as TN seeks to curb coercive recovery

Summary by Financial Express
Tamil Nadu’s Bill to curb coercive loan recovery may disrupt microfinance collections and credit discipline, impacting MFIs and SFBs in the state’s Rs 50,583 crore microfinance market. Experts warn of rising defaults and a return to unregulated moneylenders if regulated lenders scale back.

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MFIs, SFBs may face the heat as TN seeks to curb coercive recovery

Tamil Nadu’s Bill to curb coercive loan recovery may disrupt microfinance collections and credit discipline, impacting MFIs and SFBs in the state’s Rs 50,583 crore microfinance market. Experts warn of rising defaults and a return to unregulated moneylenders if regulated lenders scale back.

·Uttar Pradesh, India
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Financial Express broke the news in Uttar Pradesh, India on Monday, April 28, 2025.
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