IndiaThe microfinance sector, which had experienced a decline in its Gross Loan Portfolio (GLP) over several quarters, has shown signs of recovery with GLP returning to growth in the quarter ended March 31, 2026. This development suggests that measures such as the 3-lender rule and a loan cap of Rs 2 lakh implemented by microfinance firms have been effective in curbing bad loans. These regulations aim to ensure financial stability within the sector by limiting the number of lenders per borrower and capping loan amounts. The return to growth indicates improved risk management practices and potentially stronger oversight mechanisms within the industry.
Bias read (Center): The article discusses economic policies and their impact on the microfinance sector without taking a clear stance or showing bias towards any particular political ideology. It focuses on the implementation of regulatory measures and their outcomes, presenting factual information without apparent slm
