Microfinance Loan: Taking a loan is not a big deal in today's time because there are many options for it. Many times when loans are not available from banks, people turn to NBFC. Loans are also easily available, but when it comes to repaying the loan, people often become defaulters. The result is that the NPA of the NBFC sector has reached an all-time high.

NBFC suffers loss of Rs 50,000 crore

According to the data till December 2024, NBFC has suffered a loss of about Rs 50,000 crore, which is 13 percent of the loans given so far. Apart from this, there are many such loans which are now on the verge of becoming NPA. Their figure has increased to 3.2 percent. Whereas a year ago it was only 1 percent. That is, it is clear from this that the ability of people of weaker income groups in India to repay the loan is decreasing.

Why are people not able to pay EMI?

Now the question arises why is there such a rapid increase in loan default? It is very easy to apply for a microfinance loan. Few documents are required for this. Due to this, people take loans easily, but due to rising inflation, due to increased expenditure on everyday things, they miss out on repaying the loan money somewhere. Apart from this, many people do not have any stable income, in such a situation, paying EMI is proving to be very difficult for them.

What is a non-performing asset?

NPA means non-performing asset, which means loans that are not repaid on time. If the EMI, principal, or interest of a loan is not paid within 90 days of the due date, then it is put into NPA. In our country, people with low income take the help of microfinance loans. Its biggest feature is that there is no need to keep anything as a guarantor for it. Its purpose is to generate income.