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New Delhi: The third quarter of the 2024-2025 financial year is likely to see a dent in banks’ earnings due to slippages from unsecured loans, mainly in the microfinance sector.
A slippage happens when a borrower does not pay an agreed-upon amount towards resolving their bank loan for 90 days and it becomes a non-performing asset.
Financial Express has reported on the basis of quotes from experts that slippages and overdue loans are likely to affect microfinance lenders particularly. Microfinance delinquencies will likely peak in the first half of FY25.
According to bankers, delinquencies in microfinance loans have surged in Bihar, Tamil Nadu, Uttar Pradesh, and Odisha, which together account for nearly two-thirds of the incremental bad loans, the report said.
Experts have blamed challenges in deposit mobilisation and low corporate credit growth. However, it is also true – based on numerous ground reports, including by The Wire – how microfinance lending has brought the poorest of Indians to a dire state of helplessness.
“Unsecured loans, including credit cards, would also see higher slippage quarter-on-quarter (QoQ). But vehicle finance, housing finance, mid and large corporates and secured retail appear safe,” a report by Nuvama Institutional Equities is quoted as having said.
Indian Express has additionally held that some lenders may see some worsening of asset quality driven by a rise in slippages in the agriculture sector too.
Signs of stress in the banking system are showing as several banks are looking to sell their bad loans.
Private lender IndusInd Bank Ltd said late last year that it has invited bids on a 100% cash basis to offload its non-performing microfinance loan pool of 10.6 lakh retail loan accounts amounting to Rs 1,573 crore.

Utkarsh Small Finance Bank also announced a similar plan to sell off NPAs of around Rs 355 crore to an asset reconstruction company at a reserve price of Rs 52 crore. Its share value jumped 4% after this.
The small finance bank Ujjivan Small Finance’s shares jumped 8.7% in November 2024 after it completed the sale of a stressed loan portfolio worth Rs 270.35 crore.

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The research revealed that in the past year, firms have been battling with changes to national insurance and the minimum wage. Nonetheless, following the October Budget, firms have felt better about the future as they prepare to implement the required tax changes. However, smaller businesses have a bleaker outlook than medium-sized ones as Simply Asset Finance breaks down the impact of Chancellor Reeves’ interventions.
Fifty-three per cent of businesses questioned believe the recently announced reduction in business rates for retail, hospitality, and leisure will enable growth. Specifically for medium-sized businesses, 55 per cent saw the business rate reduction as a growth opportunity, while 48 per cent believed the fuel duty freeze would support their expansion.
Furthermore, looking at investment in infrastructure, 46 per cent of medium-sized firms expect transport spending to boost growth, with 43 per cent viewing energy infrastructure improvements as essential. With these resources at their disposal, medium-sized businesses could be poised to leverage these policies for sustained success in the year ahead.
Mike Randall, CEO, Simply Asset Finance said: “The initiatives introduced in the recent budget are a silver lining for medium-sized businesses, with many of the measures evidently enabling them to pursue growth with renewed confidence providing the resources and stability needed for innovation and expansion. However, there is a pressing need to extend similar support to micro-businesses, as they continue to bear the brunt of unique challenges and uncertainties that threaten their ability to thrive.
Over half of micro-businesses (53 per cent) believe rising national insurance contributions will hinder their growth. This is more than the responses given by 46 per cent of small businesses and 40 per cent of medium-sized businesses.
Similarly, 46 per cent fear the impact of potential capital gains tax increases, a concern less pronounced among small (40 per cent) and medium-sized (38 per cent) firms. Adding to this, micro-businesses face the highest levels of uncertainty, with seven per cent unsure about their future—far higher than the two per cent of small businesses and one per cent of medium-sized businesses.
Randall added: “The reality is that there’s no ‘one-size fits all’ policy for SMEs – nor for their financing either. Policymakers, lenders, and industry leaders must work together to provide the necessary support to help businesses of all sizes thrive, creating a more balanced and resilient future for the UK economy.
“For finance providers, it’s about flexibility and trust. Whether it’s by offering debt restructuring, showing pathways to investment, or exploring ways to help businesses manage through seasonal fluctuations, there are concrete steps that can be taken to support SMEs and help them grow despite the current uncertainties. Only by leveraging the resilience and entrepreneurial spirit of UK businesses, can we unlock the potential of businesses of all sizes, broadening support and fostering a balanced and thriving economy.”
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RBI bars four non-bank lenders from issuing loans for breaching norms  Business Standard
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If you’re not sure of the difference between a loan and a grant, check out our explainer here. You can also learn more about all funding options in our small business financing guide here.
Begin your search for a grant from the federal government at Grants.gov. This government site offers the most comprehensive database of funds the government is going to give away. There are thousands of grants to apply for, with opportunities for companies from all backgrounds.
Keep in mind that not all assistance flows directly from the federal government to small businesses. Some funds are distributed to state and local governments and agencies, nonprofit organizations, and institutions of higher learning. These entities, in turn, distribute the funds or use them to provide technical or educational assistance on a local level.
In addition to the programs listed here, be sure to check with your state and local governments and use the resources listed below. When searching through grant and contracting options, note that you may qualify for more than one program.
As illustrated by the following sampling of grants, the assistance available to you from the government will vary, depending on your specific situation.

As you would expect, acceptance of free money from the government comes with a fair amount of paperwork. Applying for a grant can be time-consuming and technical. You want to make sure, therefore, that you are eligible before applying. In addition to the legal and administrative prerequisites, there are ongoing reporting and auditing requirements.

The federal government spends billions of dollars on goods and services each year. A lot of that money is spent through a competitive bidding process. Programs have been put in place to assist some small businesses with the process, allowing them a better chance to compete for those federal dollars.
In addition to the billions of dollars spent purchasing goods and services, the federal government also sells large amounts of natural resources and surplus property. The SBA Natural Resource Sales Assistance Program sets aside a percentage of these goods for bidding by small businesses only. In addition, federal agencies sometimes divide surplus materials into smaller parcels, making it easier for small businesses to purchase. The five categories are:
The program also provides training for small businesses on government sales and leasing.

There are many nonprofit and corporate entities offering grants and other assistance to small businesses. Here are a few such programs that are open to qualifying small businesses in any industry:

Some small business grant programs are confined to a specific entrepreneur demographic or business profile and they often have an application process that is easier to navigate. This is a sample list, so be sure to check with nonprofits and large corporations in your geographic area or industry.

The programs listed above are a good start when it comes to grants and funding. You may find additional resources available by following the links below.

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Manappuram Fin up 6% as RBI lifts restrictions on arm Asirvad Micro Finance  Business Standard
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The growth of small finance banks (SFBs) in the country is set to reach 20-23 per cent in FY26 from 18-20 per cent in FY25, a report showed on Tuesday.
From a funding perspective, the SFBs have been gradually increasing the share of current account and savings accounts (CASA) deposits over the years and the same stood at around 28 per cent as of the end of September 2024, according to credit rating agency ICRA.
The credit-deposit (CD) ratio stood at 89 per cent as of September 2024, which at present is comparable to the private sector bank average.
In line with the trend seen in universal banks, there has been a move towards term deposits offering higher interests and the trend is likely to continue over the near term, said the report.
Given the industry-wide headwinds, specifically in the microfinance segment, ICRA expects the SFB growth to moderate in FY25 to 18-20 per cent from 24 per cent in FY24, and subsequently pick up in FY26 to 20-23 per cent.
“The SFBs have been diversifying their product offerings over the years to include other retail asset classes such as vehicle loans, business loans, LAP, gold loans and housing finance, which has led to reduction in the share of unsecured loans in their overall pie,” said Manushree Saggar, SVP and Sector Head-Financial Sector Ratings, ICRA.
Considering the stress seen in the microfinance sector, a larger share of incremental business will come from secured asset classes, which would be the likely growth drivers in FY26, Saggar added.
“With a more calibrated expansion in the current fiscal, the operating ratios shall benefit from higher efficiency. Higher credit costs, however, shall lead to a moderation in the overall profitability in FY25,” said the report.
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Business owners often need money to start or grow their business. But startups, very small businesses, business owners with bad credit, and those with cash flow problems often have trouble finding funding. 
Scammers capitalize on these dreams or desperation of entrepreneurs, and steal money that could be invested into the business. 
“With the broad adoption of AI, in addition to business email compromise, unsuspecting employees are wiring millions of dollars to criminals based upon deepfake audio (phone calls) and deep fake videos,” warns Adam Levin, co-host of What the Hack with Adam Levin podcast.
Getting scammed is awful, no matter who falls victim. But it can be uniquely devastating for small business owners, as business loans and payment methods don’t always carry the same protections as consumer loans or payment methods, leaving them with little or no recourse. 
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As a small business owner, you need to be aware of common loan scams. Scammers often target business owners who may need money quickly, or who are having trouble qualifying for a loan.  Here are the main types of loan scams to watch out for:
These scammers promise you a loan but ask for money upfront. They might call it:
With these offers, scammers often want payment through gift cards or prepaid cards, often asking you to mail the card or read the information over the phone. They may tell you to use payment services like Venmo, Zelle, Western Union, or Revolut to get paid quickly. 
In these scams, someone tries to steal your sensitive information. They pretend to offer a loan to get details like:
Then they can use that information to open new accounts in your name, or steal money from your existing accounts. As the Federal Trade Commission warns, “these thieves can take out loans or obtain credit cards and even driver’s licenses in your name. They can do damage to your financial history and personal reputation that can take years to unravel.”
Business owners often look for small business grants, which unlike a loan, offer money that does not have to be repaid. Scammers may capitalize on the appeal of “free money” and claim you’ve been awarded a grant, often for thousands of dollars. They say you need to pay a small fee to receive it. In reality, there’s no grant, and you lose your money.
The US Federal Government does not award grants to start a business, and will never reach out directly to business owners asking for money from someone who has not applied for a government grant. And while a business may hire a professional grant writer to apply for specific grants, you do not need to pay to apply for government grants. 
Learn more about how to get legitimate small business grants here. 
These scammers pose as loan brokers. (They may impersonate legitimate lenders or brokers.)  They charge upfront fees to “find” you a loan. After taking your money, they either disappear or keep asking for more fees without ever securing a real loan.
Fake loan apps are designed to gather personal information and scam individuals looking for loans. When discovered, these apps may be taken from app stores, but the scammers may try to create a new version. That means you must always be very careful about apps you download the permissions you give them. 
TrendMicro has written about fake loan apps and included a list of some of them. But just because a suspicious loan app doesn’t appear on one of these lists, that doesn’t mean it’s legitimate. Be careful.
It is understandable that someone who is desperate for funding may grab at any chance to get funding. But it’s that desperation that scammers prey on.
Step back and do some research first. Just the fact that you take the time to do that may buy you the space you need to avoid being ripped off. 
Before you do business with an online lender, do an internet search for the company name. (Tip: Try the “news” tab in google to see if the company has been mentioned in news articles.)
Don’t assume a professional-looking website alone means it is legitimate. If the company reached out to you (versus you reaching out to them), you could be talking to a scammer who is impersonating a legitimate company.
So always go directly to the website of the company in question and contact them through customer support to find out if they cold call customers or prospects. 
You can look up the domain name registration to see when a website was registered. This may help you spot a site that is brand new and may have been created for unscrupulous purposes. 
Most importantly, before you enter any information on an online lender’s website, check for a padlock in the URL to make sure the site is secure. You can then click on the padlock to see if the security certificate is up to date. 
Pro tip: Never enter personal information or sensitive business information on a website that is not secure! 
If you were approached by email, keep in mind that emails can look legit even when they are not. 
First, look for misspelled words, either in the email or in the email address. 
Next, hover over the email address to see if it’s as represented. The email could use the name of a legitimate bank or lender, but If the email address ends in a generic domain (like @hotmail or @gmail.com) you are very likely dealing with a scammer.
Here’s helpful information on how to tell if an email is suspicious.
Look under the website contact information for a physical address, then look that address up on google maps. 
You may be surprised how many of these searches result in a residential home address or a business that has nothing to do with lending! 
If the only address provided is a P.O Box, you may need to do additional research to verify the company is legitimate. 
You can also do a reverse search on the phone number calling you on the internet, though be careful about providing personal information to sites that provide these searches.
Even if the loan company has an online presence, that doesn’t necessarily mean that its operations aren’t predatory. Check the Better Business Bureau website to learn more about the company. In some cases, you’ll also be able to read customer reviews, which can give you a better idea of what to expect. 
The free BBB ScamTracker database you can use to research potential scams. Not every company or scam will be listed, but it’s worth checking. 
Trustpilot is another option for checking online reviews, but smaller companies are less likely to have reviews there. 
The Consumer Financial Protection Bureau publishes a database of complaints they have received from consumers about financial services companies. You can also access the FTC’s Consumer Sentinel Network data about consumer protection topics like fraud and identity theft.
Check to see if the company has complaints filed against it. Although these databases are designed to capture complaints from consumers, small business owners may have filed complaints as individuals. 
It can also be helpful to contact your state’s attorney general office or the state attorney general’s office in the state where the business is located. 
Lenders and loan brokers are often required by law to register with state agencies before they can do business there. Start by contacting your state attorney general; they should be able to tell you which office regulates lenders and/or loan brokers. 
Just remember: you need to make sure you’re not dealing with someone trying to impersonate a legitimate company.
Lenders want your business, but they shouldn’t be desperate for it. Getting a loan shouldn’t be like trying to snag tickets to Taylor Swift’s ERA tour.
If you feel like the person you’re dealing with is overly aggressive or manipulative, it might be a sign that they’re trying to fluster you and make you feel like you need to make a decision before you get all the facts.
If you feel uncomfortable about the process at any time, take a step back and consider why you feel that way and whether you should continue.
When you’re desperate for a loan, it can be difficult to pass up what may feel like your only opportunity to get one. But if you’re feeling uncomfortable, it may be because you know something isn’t right. Take time to do some research, especially if you risk losing money in the transaction.
Here are a couple of examples of business owners who went public with their scam stories:
In each case, business owners felt pressure to respond quickly to urgent messages. They put aside caution and ignore warning signs that they could be dealing with crooks. 
By now, you should have some idea of what to watch out for in a potential loan scam, but let’s go over the red flags again so you can take steps to protect yourself. 
One of the most common warning signs is a request for upfront payment. Legitimate lenders typically don’t ask for money before you receive your loan funds. 
While some loans may have legitimate fees, including origination fees or document preparation fees, these are usually deducted from your loan disbursement, not paid before you get any funding. Be especially wary if a lender insists on payment through hard-to-trace methods like wire transfers, gift cards, or prepaid cards.
Another red flag is unsecured websites requesting personal information. Legitimate loan applications may require sensitive data like your Social Security Number or Employer Identification Number for credit checks. However, it’s essential to ensure you’re dealing with a reputable company and using a secure website before providing this information. Look for the padlock icon in your browser’s address bar and verify the lender’s authenticity through independent research.
Some online lenders may request access to your bank account information to verify revenues or facilitate the deposit of funds. While this isn’t necessarily a scam, it’s crucial to ensure you’re dealing with a legitimate lender. Reputable companies use secure third-party services like MX, Plaid, Finicity for this purpose. These services help them view account information but not withdraw funds from the account. 
Promises of loan approval regardless of credit history should also raise suspicion. Most legitimate lenders have basic creditworthiness requirements. While some financing options exist for business owners with poor credit, these typically come with higher costs. Be cautious of lenders offering excellent terms to new or struggling businesses without considering personal and/or business credit scores, revenue, or time in business.
Be wary of lenders who guarantee funding when others have turned you down. Most small business lenders look for at least two of the following qualifications in business loan applications: 
If a lender promises easy approval without these standard requirements, be on guard and walk away if they demand payment before you get funding. 
Lastly, pressure to act quickly is often a sign of a scam. Legitimate lenders understand that you need time to review loan terms and make an informed decision. If you feel rushed or pressured, take a step back and reassess the offer. 
If something seems off, trust your instincts and seek advice from a financial professional or trusted business advisor.
As the Better Business Bureau warns: 
“Companies that allegedly ‘guarantee’ loans without seeing your credit history are likely scams. These scammers charge upfront fees to lock in a loan. But once you hand over the payment, the ‘lender’ vanishes along with your promised money.”
Take time to verify that the lender, financing company or broker is legitimate.
In the US, national banks and federal savings associations are chartered and regulated by the Office of the Comptroller of the Currency. You’ll find a list here. 
Stated chartered financial institutions will be registered through state licensing agencies. For example, the Michigan Department of Insurance and Financial Institutions’ Office of Banking oversees the safety and soundness of Michigan’s state-chartered banks, savings banks and Business and Industrial Development Companies (BIDCOs). 
Legitimate financial institutions and business credit card issuers won’t call non-customers, offer a loan and then request personal information. If you get a call from someone stating they are from a lender or credit card company, be very careful, especially if you aren’t a customer. 
Just tell whomever is calling that you’ll call the financial institution using contact information provided on their website. Then hang up and call the financial institution directly.
Here are some practical steps you can take to avoid falling victim to loan scams. 
By keeping an eye on your personal and business credit, you can spot any unauthorized inquiries or accounts. Many reputable lenders will check your credit as part of the loan application process. If you see an inquiry from a company you don’t recognize, it could be a red flag.
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Most legitimate lenders don’t charge large upfront fees. If they do charge fees, they’re typically deducted from your loan amount after approval. Be wary of any lender asking for payment before you receive your funds.
Scammers often use emails or text messages that appear to be from legitimate companies. They may ask you to click a link or provide sensitive information. 
Always, always verify the sender’s identity before responding or clicking any links. When in doubt, contact the company directly using their official website or phone number.
Legitimate lenders will need some details about your business, but be wary of requests for login credentials to your bank accounts or other sensitive systems. If a lender asks for this level of access, make sure it’s facilitated by a reputable provider. 
Scammers often create a false sense of urgency to pressure you into making quick decisions. Take your time to review all loan terms and conditions carefully. If a lender isn’t willing to give you time to consider the offer, it’s probably not a good deal.
Before applying for a loan, look up the lender’s reputation online. Check for reviews from other business owners and look for any complaints filed with consumer protection agencies.
Again, be especially careful if your business is in a vulnerable financial position. Scammers often target businesses that are struggling financially or have been denied loans elsewhere. If you’re in this situation, be extra cautious about offers that seem too good to be true.
Remember, it’s always better to take a little extra time to verify a lender’s legitimacy than to rush into a potentially fraudulent situation where you lose time and money that would be better spent on your business.
Falling victim to a loan scam can be a stressful and financially damaging experience. If you suspect you’ve been scammed, it’s crucial to act quickly. Here’s what you should do:
First, contact your local law enforcement immediately. File a police report with as much detail as possible about the scam and the scammers. This creates an official record of the incident, which can be useful for further action. It may also help law enforcement if other people encounter the same problem. 
Next, report the scam to your state attorney general’s office. They may have resources to investigate financial fraud and may be able to help you recover lost funds. Even if you can’t get your money back, you help establish a record of the scam. 
File complaints with federal agencies. Both Consumer Financial Protection Bureau (CFPB) and/or the Federal Trade Commission (FTC) both have the ability to gather complaints about financial fraud. These agencies use complaint data to identify trends and take action against scammers.
Contact your bank or credit card company immediately if you shared any financial information with the scammers. Explain the situation and ask them to freeze your accounts or issue new cards to prevent further unauthorized transactions.
Monitor your credit reports closely in the weeks and months following the scam. You’re entitled to free weekly credit reports from the three major credit bureaus through AnnualCreditReport.com. Look for any suspicious activity or accounts you don’t recognize.
Consider placing a fraud alert on your credit reports. This free service makes it harder for someone to open new accounts in your name. You only need to contact one of the three major credit bureaus (Equifax, Experian, or TransUnion), and they’ll notify the other two.
If the scammers gained access to sensitive personal information like your Social Security number, you might want to consider a credit freeze. This makes it much harder for fraudsters to open new accounts in your name.
Document everything related to the scam. Keep copies of all correspondence, notes from phone calls, and any other relevant information. This documentation can be crucial if you need to take legal action or work with law enforcement.
Seek legal advice if you’ve lost a significant amount of money. A lawyer specializing in financial fraud may be able to help you explore options for recovery.
Lastly, share your experience with other business owners. By spreading awareness, you can help prevent others from falling victim to similar scams.
Remember, recovering from a loan scam can take time and effort, but you’re not alone. There are resources available to help you through this challenging situation. Stay vigilant and don’t hesitate to seek professional help if you need it.
If you’re trying to get capital to grow your business, you want to make sure you’re dealing with a legitimate lender or financing company. It can save you from losing money and, potentially, your business.
Nav can help. With Nav you can check, manage and monitor both your personal credit and business credit, and view financial options from 160+ trusted loans and credit cards based on your business data.
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Use this checklist when researching potential lenders to help avoid business loan scams.
□ Search the company name + “reviews” or “complaints” 
□ Verify the company’s website uses “https://” and shows a padlock icon 
□ Check the Better Business Bureau (BBB) rating and reviews 
□ Look up the company’s physical address on Google Maps 
□ Verify state licensing on the official state regulatory website 
□ Confirm the company’s phone number matches official records 
□ Check that company emails come from a business domain, not @gmail.com 
□ Search for news articles about the company 
□ Verify the lender is registered with the appropriate state agencies 
□ Cross-reference company details with the Secretary of State’s business registry
Watch out for these warning signs:
□ Requests for upfront fees or payments 
□ Pressure to act immediately 
□ Guaranteed approval without credit checks 
□ Unsolicited loan offers 
□ Requests to wire money or send gift cards 
□ Non-secure website asking for personal information 
□ No physical business address 
□ Unusually low interest rates despite poor credit 
□ Request for bank login credentials 
□ Company unwilling to provide licensing information
□ Website security (https:// and valid certificate) 
□ Company’s legal registration status 
□ Physical location exists and is legitimate 
□ Clear fee structure and when fees are collected 
□ Written documentation of loan terms 
□ Lender’s privacy policy and data protection measures 
□ Company’s reputation through independent sources 
□ Professional email addresses and communication 
□ Legitimate third-party payment processors 
□ Clear explanation of the loan process
□ Stop communication immediately 
□ Document all interactions 
□ Report to local law enforcement 
□ File a complaint with:
□ Alert your bank or credit card company 
□ Monitor your credit reports 
□ Consider placing a credit freeze
Keep this checklist handy when researching business loans. Remember: It’s better to take extra time to verify a loan company is legitimate than to fall victim to a scam.
Download and print this checklist for easy reference when researching potential lenders.
To get a loan or financing from a small business lender or financing company, your business will likely need to meet at least two of the following qualifications. 
If you don’t meet some of those requirements, you or your business will likely need to meet other qualifications or look for alternative financing. 
Some microlenders may be more flexible, for example. And certain types of low-risk businesses may be able to get startup funding, especially if the owner has strong personal credit. (A new veterinary practice, for example.) 
But generally, a business with bad credit, low or no revenues, and/or in an industry that is difficult to fund because it is considered risky, will likely have trouble getting funded. They could be vulnerable to scams. 
If you are having trouble qualifying for a small business loan, there are legitimate resources that may be able to help:
SBA resource partners like SCORE or your Small Business Development Center provide free mentoring services to entrepreneurs. 
Your accounting professional can help you evaluate your business cash flow and financial situation.
Nav can help you understand your credit, as well as how lenders view your qualifications for a loan. Learn how to establish business credit, and leverage credit for financing, with Nav. 
If you’re receiving multiple business loan offers, there are several reasons this might be happening. Many lenders purchase marketing lists of business owners from credit bureaus and business data companies. When you apply for a business credit card, register your business, or take certain actions that appear in public records, this can trigger an increase in loan offers.
Some lenders also track businesses through:
While some of these offers may be legitimate, an increase in loan offers can also attract scammers. Be especially careful if you’re receiving offers after:
Remember: Legitimate lenders don’t typically don’t make unsolicited calls promising guaranteed loan approval. If you receive unexpected loan offers, always verify the lender’s legitimacy before sharing any personal or business information.
Don’t let the warnings about scams scare you from getting the financing your small business needs. 
You can reduce the risk of business financing by having a clear plan for how you plan to use and repay the funds you borrow. 
Evaluate what you’ll use it for and how it will help your business grow or solve a specific problem. Calculate whether your business can handle payments, even during slower periods. 
Remember that regardless of how well your business performs, you’ll need to repay the loan according to the terms.
Key factors to consider before taking a business loan:
Working with reputable lenders helps you avoid predatory loans. These include traditional banks, credit unions, and established online lenders, or lending marketplaces that help match borrowers with funding options. They should provide clear terms, transparent fees, and answer your questions about the loan process.
This article was originally written on April 3, 2019 and updated on October 28, 2024.
This article currently has 190 ratings with an average of 4 stars.
Gerri Detweiler
Education Consultant, Nav
Known as a financing and credit expert, Gerri Detweiler has been interviewed in more than 4000 news stories, and answered over 10,000 credit and lending questions online. Her articles have been widely syndicated on sites such as MSN, Forbes, and MarketWatch. She is the author or coauthor of five books, including Finance Your Own Business: Get on the Financing Fast Track. She has testified before Congress on consumer credit legislation.
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I was contacted by a loan office after doing an online loan application. The loan office requested my bank account, routing number, and password. They’re wanting me to receive a deposit by electronic deposit lesser than what was requested. Then send it back through cash app using Bitcoin (to build my credit). Then said they will send the original amount I requested.
I don’t know how that type of payment could build your credit. I am not aware of those types of payments being reported (or reportable) to credit. I can’t say whether it’s legit or not, but please be careful.
same exact thing happened to me just last week exactly as you said, so now I ended up calling the bank even though they put the check through I called the bank and said this doesn’t seem right and needless to say I open $400 so I hope nobody else gets caught up in this and it was called something lenders
Hi
Are the two companies, legit loan lenders Notal Finance and MAXBIND(Pty).Ltd
We can’t comment on the legitimacy of specific lenders.
hello i am dealing with a lending company name SHEE SHYAM FINANCIAL SERVICES located in india i just want to know if this company is legal or fake? i already check their domain name and its registered,thank you
Unfortunately we can’t comment on specific lenders. We hope the tips in this article will help you make your own determination. You can always check your financing options in Nav to see what’s available there.
I just don’t understand how places banks, credit unions, and high interest lenders make their decisions. All of my accounts are in perfect standing. I recently had an unexpected reduction in income and forsee having issues keeping everything in good standing. Trying to be responsible, a consolidation loan makes perfect sense. We aren’t talking a large loan 5,000. Consolidation would save me hundreds a month. What do they see as a risk? I am so depressed and frustrated. I’m definitely not a quitter but I can’t handle more no’s.
Amy, Have you talked with Nav’s Credit & Lending team to see if there are other options available? If you have and still haven’t found options then I’d also suggest a nonprofit microlender.
Another option if you qualify could be a 0% APR credit card which could give you time to build your revenues back up.
Hello will a a leandwr require you to pay an upfront fees before thw release the money
As we mention in the article, please be careful. Upfront fees can often be a sign of potential loan fraud.
This same thing happened to me today im supposed to give them back the money prepaid card im wondering is this legit??
Sarah you may want to reach out to local law enforcement. They may be able to help you identify whether this is a scam.
Would a real lender company ask u for ur bank login info an password before to verify ur account ? If there a real lender company they should only need ur routing an account number correct?
Some lenders use third party companies to link a bank account to verify revenues. When that happens it goes through a secure service like Plaid or Yodlee. If a lender is asking for your bank log in information over the phone or by email I’d be very concerned.
I got scammed this way, what they did was ask for my login info And when I gave it to them they wrote or deposited a check which happened to be from a stolen account I’ll still in checkbook and they were going to just send their money to themselves as a good faith trick.
But your company is asking for an upfront of 39850 and is stated here that no original loan lenders ask for an upfront
What company is asking for that money up front?
Great job! Thanks for sharing this amazing blog.
What if a lender needs your online banking information, is it OK to give it to them
Some lenders do require you to link your bank account either to verify revenues or to deposit your funds but make sure you are dealing with a reputable company.
They say I must pay money policy and immediately reflect payment
Again, I can’t tell you one way or the other so proceed with extreme caution.
I’ve never had a loan before so Im not sure how to verify any of that. Have u ever heard of west side lending or lenders
Hi good day!
I haved seen a lending company named geeyook services which is base in turkey.,. I try to applied for a loan they emailed me that im quality to apply for a loan..
After 2 days they send me a loan agreement that i need to be signed to my loan will be transfer in my account, but before they proceed for the transfer i just need to pay an insurance fee that cost 7,082..
Just wanna ask if this is legit company.
Thank you very much..
I’m sorry we can’t comment on specific companies. We hope the tips in this article will be helpful. As we suggest, be very careful about upfront fees.
I’m trying to find out if it’s okay to send a photo of my ID to a loan company
Legitimate loan companies do typically require proof of the owner’s identification for compliance reasons. Make sure you feel comfortable with the lender you’re dealing with before you share personal details.
I got a dm saying I won an opportunity for a ppp loan and wants my bank password and transit number is that a scam?
PPP is closed to new applications so yes it sounds like a scam. (Plus you don’t “win” opportunities for PPP loans. If you qualify you apply – before it closed.)
I would like to know if geeyook Inc is liget company to offer a personal loan
We can’t comment on specific lenders unfortunately but we hope you can use the tips in this article to check them out.
I applied a personal loan in one company and it is approved then, the company asked me to pay the insurance fee and loan vat. It is necessary to pay the insurance fee and loan vat before the loan amount release? The company located in metro politan italy.
I don’t know the policies for loans in Italy unfortunately. At this time our site is for business owners in the US.
I am approved for a secured loan of $12,500. I have been asked to pay $705 to as the security for the loan which is equivalent to 3 payments. Is this a legitimate ask?
I can’t say for certain but I’d recommend you be very careful. Asking for payments up front before you get the loan is a common tactic from scammers. Also if a loan is secured that would mean putting up the amount of the loan (or close to it). Three payments upfront does not make a loan of that size secured in any traditional sense.
Yes I’m already paid for all
I applied a personal loan in geeyook inc. last july 2021 and according to them my loan was already insured but untill now i did not pay the International monetary fund in order to transfer my loan amount. Untill now they are waiting for my monetary fund to pay by me in order to transfer my loan into my account. My query is it can be a legitimate or not? They are not make me hurry to pay the said payment.
I can’t comment on a specific lender and I don’t know this one. But generally upfront payments are a big red flag. I’d be concerned you may be throwing good money after bad. Please do more research and consider reaching out to local law enforcement before you send any more money.
Where and how in South Africa can I check whether the loan company is an Accredited and legitimate Credit provider
Unfortunately we don’t have information that applies to lenders outside the USA.
I applied for a loan online with Marrsby Loan Services. I got approved for a $5000 loan and they asked for $450 collateral payment. I sent the money. and broker told me the funds where released and would be sent by etrasfer. it’s been 2 days now.
just wonder if this company is legit.
I tried calling the number but I can’t get a hold of anyone it keeps going to voice mail.
I was pre-approved for a loan and they sent me the check . I haven’t deposited it yet because I haven’t been sure if it was legit or not but I have until the 24th. How do I know if it’s a secured loan and if the loan company is legitimate
Vicki – we can’t comment on specific companies but we hope you’ll be able to use the resources in this article to come to a conclusion.
I apply for a loan they told me to pay a sum amount of money by company names signac lending company
We can’t comment on this particular offer but upfront payments can be a red flag. Be careful.
I just wanted to know is FY group a legitimate loan company
Jerome – We can’t comment on specific companies. We hope that the guidelines in this article will be helpful.
Good day Jerome
I have applied as well and they suddenly quiet.
Please advise if you got your loan from them or is it a scam
I’m interested in trying to find out if united loan network is a legitimate loan company
United Loans from New York said I was approved for loan, I live in Oklahoma and I was wondering if this business is legit?
Christie – We can’t comment on specific companies unfortunately. We hope the information in this article will help you vet loan companies.
is geeyook .com is legit they need transfer fee before i get the money i borrow?
We can’t comment on specific lenders. Please be VERY careful about paying upfront to borrow money. That is typically a scam.
Is signac lending company real or fake?
We can’t comment on specific lenders. We hope the tips in this story will help you check out potential lenders, especially if any upfront money is involved.
I would like to know if Amazon is loan is legal cos they require upfront ayment
Are you sure you’re dealing with Amazon and not an imposter? Please be careful.
A company name lending club said I was approved but they had to send a small amount to my account n send it back to boost my credit. They also asked for my bank login info is this legit
I’m not clear what’s happening but please be sure you are talking to Lending Club and it’s not someone pretending to be Lending Club. I’d suggest you to to the Lending Club website and reach out to them directly. Scammers will sometimes use the name of a legitimate lender.
I’m new to this so Lending club asked me for my online bank information like username and password, is this the usual information needed?
How did they ask Trish? Over the phone? If so that could be a red flag. I’m not sure what you’re dealing with but please be sure you are talking to Lending Club and it’s not someone pretending to be Lending Club. I’d suggest you to to the Lending Club website and reach out to them directly. Scammers will sometimes use the name of a legitimate lender.
I got a phone call 7.11.22 saying I was approved for a grant. Didn’t give name of company or state. She talked with a very thick accent. She wanted my debit card number and I gave it to her which I’ve regretted ever since. She said they hold out $5.87 from my account and would be added back when I got my money. How do I get it stopped and fixed where they can’t get money out of my checking account
I would recommend you contact your bank immediately.
close your account immediately!!!!
Are Amerisave and LoanSteady Legitimates?
Luis – we can’t vet lenders for you but we hope the tips in this article will help you do your own research to determine if you are dealing with someone legitimate.
I got a callback from a company who asked for me to pay 200 for ppi insurance. Fake or not?
Never heard of it. Sounds like a scam.
Is it normal for a CashNetUSA loan officer to ask to deposit money into the account from an atm from the bank but not from the lobby???? I’m negative $60 in my account. He wants me to deposit $20 then take a picture from the receipt and send it. I changed my log in info and password just in case it’s a scam.
Virginia it doesn’t sound legitimate to me.
Would like to know if Rodeco is a legitimate finance company.
I had a “loan company” identifying himself as David Barker from Loan Net USA. He asked for my bank account, routing number, my debit card number, my security code on back of my debit card and my online bank user id and password. Said he was going to put a undisclosed amount in my bank account and he would call me, to verify what the amount was. This was to verify my identity and the account is mine. I would then send this back to loan company. I was to answer the phone when he called back. And any other lenders. I needed to hang up on. I had given my info already when he started talking about this amount for verification! I was worried it was a scam, so I went and changed my password to my online bank account. Can they still use my account? Do I need to close the account?
Virginia – This sounds fishy. I hope you contacted your bank asap.
I have been contacted numerous times by a lending group saying that I was approved for a $5,000 personal loan. They assured me that they were with the better business bureau and the company is a legitimate company but I have been asked to provide my online banking login information and other personal information. They knew all my information that I used to request the loan online but I don’t understand why they would need access to my account like that. I told him I had issues with the process and giving up my personal details to a unknown person on the other end of a phone call. I just don’t want to get into something that I Will regret later. They told me the monthly payment of the loan and the 10% APR. AND he said that I could even clear out my account first to be safe. Is there any way to make sure that they are real or a scam. A question that is a 4sure sign that they can’t be real of they answered me wrong. Thanks
I personally would not provide my personal information to someone who called me out of the blue guaranteeing a loan at a low promised interest rate. Please be careful.
I received a call from a company for my loan approval. They were asking my phone banking user id and password ? Is it genuine or a fake call ?
You should never give your phone banking user id and password to someone over the phone.
.i have a loan company wanting me to send 3 post dated checks for loan with lower interest.
I had a lady call and say I was approved for a loan she wanted my social security number my debit card verification number and my goggle verification from phone number 6469924478 is this normal
That sounds like a scam. I hope you didn’t provide it!
Why is they asking for my bank routing number
The lender? Either to take money out of your account or to put it in. (Provided they are a legitimate lender.)
Sorry if I did this incorrectly but I have spoken with several hopefully”legit lenders”. I keep running into the same issues. If all I have is All the mobile bank accounts like NetSpend, Green Dot, PayPal, Go2bank Brinks etc but technically I don’t have a”real” bank account like with Bank of America, or Wells Fargo and places like that. Is there anyway they could still be legit if they are asking for me to pay a $50 state to state transfer.?????
Kacey – I really can’t say what may or may not be a legitimate fee in each instance. I am not familiar with a state to state transfer fee unless it’s a real estate fee. The best I can do is suggest you follow the tips in this article to do your own due diligence.
I was approved for a 3000 dollar loan from this company. I talk to this person from the company and everything is going great. But at the end he tells me that the need me to get a ebay gift card and load 150 dollars on ot which is the amount of the monthly payment and nobody will take money off of it. And at the end of the loan when I’m done paying the loan back they could help me get that money rerturned. Scam or no
That has all the hallmarks of a loan scam. No legitimate lender will tell you to get en ebay gift card.
Hi I’ve just apply for a loan and they ask for my ID number, my bank account number, my routing number, my social security number. Etc. Is it safe to give it?
If you have verified you are dealing with a legitimate company, then these are not unusual questions.
I have person who say i was approved for loan. Say only way for me get the loan is need boost my credit. Only way boost my credit them put money in my account boost my credit then pay them back in gift card. Then I’ll get loan that true
I wouldn’t recommend it Cici. Paying someone by gift card gives them untraceable funds. It sounds like a classic loan scam. You would be much better off putting that money toward a secured credit card.
I applied for a loan with a company but they ask that I send 502.00 for insurance and attorney fees. The 502.00 must be from a bank or post office. Could this still be a scam?
Sounds very fishy. I would not recommend it.
I have a lender that seems legitimate. But because of my credit they want 3 months of payment first and then I’ll receive my loan. And that she’ll have me the contract before I pay any money. She also gave me a few other options like a cosigner with a credit score of 800, a car or house for collateral. Or pay 3 months payment of 450 which my monthly payments would be 150 a month. And then I would receive the loan. Does this sound legit or a scam? I need help
No! Do not pay up front. That’s the hallmark of a loan scam.
I have a company called Quick Cash Financials that say I’m approved for a 5k loan with an interest rate of 8.5%, and say my payment will be $250.00 for 24 months. But before they can transfer the money they need my sign in for my bank account, just seems very strange to me.
Hi Sharon, it’s not uncommon for lenders to make an ACH deposit of funds into your account rather than cutting you an actual check. With that in mind, it’s fair to ask them why they want access to your bank account.
Whatever became of this? these same guys just sent me an email with a very juvenile looking loan agreement
I have the exact same thing going on.. did you ever find anything out?
Ben I work as a commercial loan broker. There is a common misconception that lenders should not ask for money up front. If they do they are scammers. Lenders must perform their due diligence which includes ordering appraisals, surveys, environmental reports, title searches among other third party reports. Legal expenses must also be paid to draw up loan documentation. If the lender is not in the same city or state as the collateral property they must travel to it therefore travel expenses are incurred. Are you suggesting all of these costs are to be absorbed by the lender? If lenders paid these costs out of pocket everytime they received a loan request many would be out of business. Don’t be naive and stop misleading people. There are very legitimate lenders who ask for these very reasonable costs from the borrower upfront. It is the responsibility of the borrower to perform their due diligence and make sure they know the value of their property and even order the necessary reports which lenders in some cases will update if they are recent enough. The other aspect to consider is the legitimacy of the borrower. It’s a two way street. Is the borrower serious? There are many tire kickers out there. I have seen them. Time wasters. They waste people’s time. They want 100% financing with absolutely no risk on their part. They’re not willing to put any skin in the game. Simply put they are looking for unicorns. I tell them this. I am very blunt and don’t waste time with tire kickers because many of them don’t have two nickels to rub together and yet want some lender to believe their business idea is the next best thing since sliced bread and just drop a bag a cash in their lap while wishing them good luck. It doesn’t work that way. Any serious sponsor with a loan request will get an attorney on board to review loan documents before signing anything or paying deposits to lenders. I for one encourage all borrowers I work with to review everything with an attorney before moving forward. I just wish this lie would not continue to be perpetuated. There are cost deposits lenders require which are perfectly justifiable.
thank you very much
Ben,
Owler and Crunchbase are not credit bureaus and both entities pull their data from user contribution and websites. most fraudulent companies have a website and will appear to be legitimate on Owler!

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Microfinance sector sees major shift as 94.8% stakes change hands under approved deal
The Competition Commission of Pakistan (CCP) has approved the acquisition of a 94.8% shareholding in FINCA Microfinance Bank Limited by TPL Corp Limited and ABHI (Private) Limited. The transaction marks a significant development in Pakistan’s microfinance sector, as the two entities acquire stakes from the bank’s existing shareholders, including FINCA Microfinance Coöperatief U.A., International Finance Corporation (IFC), Triodos Fair Share Fund, and Acumen Pakistan.
Under the agreement, TPL Corp will acquire 33.17% of FINCA Microfinance Bank’s shares, while ABHI (Private) Limited will secure a majority stake of 61.61%. Following its competition assessment, the CCP concluded that the acquisition would not create a dominant market position for the acquirers in Pakistan’s microfinance lending market.
TPL Corp, a publicly listed investment company, operates across a range of sectors, including insurance, real estate, asset tracking, and technology start-ups. ABHI, a licensed private entity, specializes in providing investment finance services under Pakistan’s non-banking finance company (NBFC) regulations.
FINCA Microfinance Bank Limited, regulated by the State Bank of Pakistan, has been a significant player in offering financial services to underserved communities. Its outgoing shareholders—FINCA Microfinance Coöperatief U.A., IFC, Triodos Fair Share Fund, and Acumen Pakistan—are globally recognized entities focused on sustainable investment and socio-economic development in emerging markets.
The transaction is expected to enhance the scope of microfinance services in Pakistan, leveraging the diverse expertise of the acquiring entities.
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Principal Associate in the General Corporate practice at Mumbai office of Cyril Amarchand Mangaldas. Aanirud joined the firm in the year 2017 after graduating from West Bengal National University of Juridical Sciences, Kolkata. He advises on mergers & acquisitions and foreign investments in India, with a greater focus on the Indian insurance sector. He has worked on several transactions in relation to acquisition of private and public companies, business transfers and initial public offerings (including the IPO of Life Insurance Corporation of India). Anirud regularly advises insurers and insurance intermediaries in relation to, amongst other aspects: Corporate Governance, General Corporate Strategies, Business Ventures and Partnerships, Distribution and other forms of engagement between insurers and insurance intermediaries and Data Protection, Data transfer, Data Localisation.
The Kolkata Bench of the National Company Law Tribunal (“NCLT”), on September 19, 2024, dismissed an application filed under Section 66 of the Companies Act, 2013 (“Companies Act”), in Philips India Limited[1] (the “Order”), on the grounds that Section 66 of the Companies Act cannot be invoked for capital reduction when the circumstances mentioned in Section 66(a) or 66(b) of the Companies Act are not met. The NCLT held that Section 66, which provides for reduction of share capital, cannot be used merely to provide liquidity or exit to minority shareholders, or to save on administrative costs. The Order attempts to justify the same on the grounds that the proposed share capital reduction was only incidental to the main objective of buy-back of shares.[2] However, this observation is in stark contrast to a catena of NCLT and National Company Law Appellate Tribunal (“NCLAT”) orders, as well as decisions of various High Courts that have time and again noted that a company may reduce its share capital in any manner as it deems fit, and courts have limited role in such schemes of capital reduction.Continue Reading Is the NCLT’s approach in the Philips India case too literal?
Banks in India are often on the look-out for potential acquisition opportunities to spur inorganic growth. While their strategic interests will determine their targets, in recent times, banks have been evaluating acquisition of non-banking financial companies (“NBFCs”) and more specifically micro-finance institutions (“MFIs”), which primarily cater to the rural and…
On March 20, 2024, the Insurance Regulatory and Development Authority of India (“IRDAI”) notified the IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) Regulations, 2024 (“Registration and Capital Regulations”), which consolidated and rationalised the regulatory framework applicable on an Indian insurer in aspects, including listing on a stock exchange pursuant to an initial public offer (“IPO”) that may consist of a fresh issue of equity shares or an offer for sale. Our detailed analysis on the other aspects of Registration and Capital Regulations can be found here.Continue Reading IRDAI Regulatory Reform Series: Listing of Indian Insurance Companies on Stock Exchanges
The Insurance Regulatory and Development Authority of India (“IRDAI”) has a statutory duty to regulate, promote and ensure orderly growth of the insurance business and reinsurance business in India. Based on the IRDAI’s initiative to promulgate consolidated and principle-based regulations to govern the insurance industry, the Life Insurance Council and General Insurance Council (representative bodies of life and general insurers, respectively) constituted the Regulation Review Committee (“RRC”) to review the entire insurance regulatory framework and recommend principle-based regulations.Continue Reading IRDAI Regulatory Reform Series: Registration and Capital Structure of Indian Insurance Companies
The Insurance Regulatory and Development Authority of India (“IRDAI”) has notified the introduction of first phase of pilots for implementing ‘Risk Based Supervision’ (“RBS”) framework for the insurance sector in India[1], commencing from July 2023. The IRDAI has collaborated with M/s Toronto Centre[2] for the aforesaid project. According to the IRDAI press release, RBS is a shift towards adopting global best practices for supervision which focuses on proportionality, materiality and relies on holistic analysis of the activities of regulated entity from risk perspective. The IRDAI’s intention to shift to the RBS framework for the insurance sector was first divulged vide a notification in October 2018[3], which listed the following benefits for insurance supervision[4]:Continue Reading Risk Based Supervision: Pilot Basis for New Regime to Take Off?
The remuneration payable to Chief Executive Officers (“CEOs”), Whole-Time Directors (“WTDs”) and Managing Directors (“MDs”) of insurance companies is governed under Section 34A of the Insurance Act, 1938. This provision requires insurers to procure prior approval from the Insurance Regulatory and Development Authority of India (“IRDAI”) in relation to such remuneration. The IRDAI (Remuneration of Non-Executive Directors of Private Sector Insurers) Guidelines, 2016 and IRDAI (Remuneration of Chief Executive Officer/Whole Time-Director and Managing Director of the Insurers) Guidelines, 2016 dated August 5, 2016 (collectively, the “Erstwhile Guidelines”) have historically governed this matter. In supersession of the Erstwhile Guidelines, the IRDAI has recently notified the Guidelines on Remuneration of Directors and Key Managerial Persons of Insurers, on June 30, 2023, which includes the IRDAI (Remuneration of Non-Executive Directors of Insurers) Guidelines, 2023 and IRDAI (Remuneration of Key Managerial Persons of Insurers) Guidelines, 2023 (collectively, the “Revised Guidelines”). The Revised Guidelines are effective from the FY 2023-24 i.e. from April 1, 2023 and the insurers are required to complete the process of framing/reviewing the remuneration policy within three months of the issuance of the Revised Guidelines.Continue Reading Remuneration to Directors and KMPs of Insurers – Enhanced Guidelines with Extended Coverage
Pursuant to Sections 40B and 40C of the Insurance Act, 1938 (“Insurance Act”), the Insurance Regulatory and Development Authority of India (“IRDAI”) is empowered to regulate and impose limits on the amount that insurance companies may spend on Expenses of Management[1] (“EoM”). Further, in terms of Section 40 of the Insurance Act, no insurer is permitted to pay, or agree to do so, to any insurance agent or intermediary, commission or remuneration in any form other than in the manner specified by the IRDAI through a regulation.Continue Reading Liberalisation of Expenses of Management Limits and Linkage with Commission: Impact on the Insurance Industry
Introduction
Four months after the Insurance Regulatory and Development Authority of India (“IRDAI”) notified 2022 Regulations that streamline registration and share transfer requirements of Indian insurance companies, the IRDAI has issued a master circular titled ‘Master Circular on Registration of Indian Insurance Company, 2023’ dated April 24, 2023 (“Master Circular”) to supplement the procedural aspects of 2022 Regulations.Continue Reading Highlights of the Master Circular on IRDAI (Registration of Indian Insurance Companies) Regulations, 2022
The Insurance Regulatory and Development Authority of India (“IRDAI”) has notified the IRDAI (Registration of Indian Insurance Companies) Regulations, 2022 (“2022 Regulations”), on December 8, 2022. The 2022 Regulations consolidate various prescriptions relating to registration of Indian insurance companies and the transfer of shares of such entities. Previously, such prescriptions were dispersed across multiple regulations, circulars, and guidelines such as the IRDAI (Listed Indian Insurance Companies) Guidelines, 2016, and the IRDAI (Investment by PE Funds in Indian Insurance Companies) Guidelines, 2017 (“2017 PE Guidelines”).Continue Reading IRDAI (Registration Of Indian Insurance Companies) Regulations, 2022 – A Step-Up for Private Equity Participants
The Government of India, through the Department of Financial Services (Ministry of Finance) (“DFS”), is proposing extensive amendments to the Insurance Act, 1938 (the “Act”), with a view to enhance insurance penetration, improve efficiency, and enable product innovation and diversification[1]. The DFS published an office memorandum dated November 29, 2022 (“DFS Memorandum”), setting out the proposed amendments to the Act and commencing a process of public consultation on the proposed amendments until December 15, 2022. The Insurance Laws (Amendment) Bill, 2022 (the “Amendment Bill”), is seen to be catering to the long-standing demands of the industry and seeks to improve some of the fundamental tenets of the Act.Continue Reading The Insurance Laws (Amendment) Bill, 2022 – Charting a new course

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The business of Micro Finance Institutions (MFIs) industry has risen from Rs 17,264 crores in March’12 to Rs. 3.93 lakh crore as of November ‘24, M Nagaraju, Secretary, DFS, Ministry of Finance was apprised by the industry representatives during a meeting in New Delhi.
As per the MFI state holders, the industry has grown more than 2,176 per cent over 12 years. The Ministry of Finance stated in a release DFS Secretary chaired a meeting with major Micro Finance Institutions. The meeting was also attended by senior officials of DFS including industry bodies namely MFIN and Sa-Dhan.
The engagement with MFIs was designed to foster an open exchange of ideas aimed at elevating the MFI sector. The emphasis was on reaching low-income households in villages and uplifting their lives by providing them with hassle-free financial assistance if needed. Participating MFIs apprised that the business of the MFI industry has risen from Rs. 17,264 crores in March’12 to Rs. 3.93 lakh crore as of November ‘24.
The industry operates in over 723 districts including 111 aspirational districts across 28 states and 8 Union Territories. They also cater to the financial needs of almost 8 crore borrowers. MFIs contribute 2.03 per cent of the gross value added to GDP and support 1.3 crore jobs.
During the meeting, challenges and issues being faced by MFIs were also discussed. It was informed that MFIs are facing difficulties in raising low-cost long-term funds. The quality of the MFI portfolio is being impacted on account of various issues including a reduction in lending to the sector. (ANI)
 




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