Microfinance Stress Is Evolving: From Credit Risk to Liquidity Compression
India’s microfinance sector is entering a structurally important transition phase, one that reflects a shift from acute asset quality deterioration (credit risk) to a more complex challenge of credit flow compression (liquidity impact). The latest Microfinance Pulse Report (March 2026) provides clear evidence that while the worst of the credit stress may be moderating, its…
