Whalesbook
Several Indian microfinance companies have defaulted on bank loans due to persistent asset quality issues and a funding crunch lasting over six quarters. Smaller, under-capitalised lenders are particularly vulnerable, requiring urgent funding to survive. VFS Capital is the latest to default, joining others like Navachetana Microfin Services and Arth Finance, raising concerns about the sector's stability and the survival of small lenders serving low-income borrowers.