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Zerodha Pulse • Jun 13, 2026 10:10 AM • Impact Score: 4.0/10 • Severity: MEDIUM

Default clouds hover over microfinance as industry flags weak monsoon

In the evolving world of India's microfinance sector, fresh credit risks are emerging on the horizon. The dual challenges of an unsteady monsoon and geopolitical tensions in West Asia could significantly affect the livelihoods of rural populations. Despite a recent upturn in asset quality, these external threats raise serious concerns for sustained growth.

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