Whalesbook
Non-bank lenders including Bajaj Finance, IIFL Finance, Shriram Finance, and Ugro Capital are slowing growth in collateral-free lending to Micro, Small, and Medium Enterprises (MSMEs). This caution stems from increasing defaults by borrowers with weak credit profiles and over-leveraging. Companies are shifting towards secured loans, stricter borrower checks, and increased provisioning for potential losses, leading to revised, lower growth expectations for MSME loan books and overall portfolios.