Photo: Hemant Mishra/MintMumbai: India’s microfinance industry is showing signs of overheating in a possible reminder of the crisis that hit micro lenders in Andhra Pradesh in 2010. According to Crif High Mark, top-up loans are defined as those with a ticket size of less than Rs10,000 and where customers have at least two active loans. Also, 17% of these customers with top-up loans are servicing five loans at a time,” said Kalpana Pandey, managing director and chief executive officer, Crif High Mark. The total loans outstanding to microfinance borrowers stood at Rs93,800 crore, of which microfinance companies and banks held 62% and 28% respectively, December-end data showed. ALSO READ | Cash-dominated microfinance sector reels under demonetisation stressSa-Dhan, a self-regulatory organization for the microfinance industry, believes that these top-up borrowers are showing signs of risk.

Source: Mint January 29, 2017 20:39 UTC