In a recent session of the Lok Sabha on 11th August, AIMIM President Barrister Asaduddin Owaisi raised pertinent questions regarding the alarming surge in microfinance loan delinquencies, which have reportedly soared by 163 per cent, reaching Rs. 43,000 crore in the financial year 2024-25.

Owaisi queried whether the Government was aware of this significant increase and sought to understand the underlying factors contributing to the spike, particularly among small borrowers. He highlighted the critical need to assess the financial risks this trend poses not only to Non-Banking Financial Companies-Micro Finance Institutions (NBFC-MFIs) and small finance banks but also to the broader credit ecosystem as a whole.

Furthermore, Owaisi pressed for information on whether the Government is contemplating any corrective measures to mitigate the further deterioration of microloan portfolios. He called for clarity on any proposed frameworks that could address the ongoing issues within the microfinance sector.