AK News Microfinance interest rates continue to climb as credit costs stay high

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Microfinance interest rates continue to climb as credit costs stay high

Published on: Oct. 7, 2025, 12:43 a.m. | Source: The Economic Times

Microfinance interest rates are rising, defying the general trend of declining rates, as lenders grapple with increased credit costs and persistent asset quality issues. Major NBFC-MFIs have hiked their lending rates, widening the range to 18-28% due to higher delinquency and funding costs.

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