Slower transmission, risk meter keep borrowing cost high for most MFIs
Published on: Sept. 9, 2025, 9:48 p.m. | Source: The Economic Times
Despite policy rate cuts, banks are hesitant to significantly lower lending rates to microfinance institutions due to lingering asset quality concerns and internal margin pressures. Smaller MFIs face tightened purse strings and higher risk premiums, hindering their access to crucial funding.
