NBFCs tighten MSME lending over rise in bad loans: Report
Vaishnavi Mishra, Published on Nov 18th, 2025

Non-Banking Financial Companies (NBFCs), including Bajaj Finance, IIFL Finance and Shriram Finance slowed the expansion of unsecured MSME loans, Mint reported. This follows an extended period of rapid lending to borrowers with weaker credit profiles. Reportedly, over 26% of NBFC loans were extended to small businesses in the highest-risk category, compared with 18% for private-sector banks.
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