RBI warns: Keep an eye on microfinance loans, folks!

The RBI has raised a red flag about the state of microfinance loans! In 2024-25, the GNPA for NBFC-MFIs jumped to 4.1%, up from 2.0% the previous year. Meanwhile, other NBFCs are doing better, with their GNPA dropping to 2.9%. The RBI warns that we need to keep a close eye on these loans to avoid any trouble down the line.