18 Nov 2025 | 5 Mins Read
NBFCs slow down MSME lending due to rising bad loans
Flipitmoney
Major NBFCs, including Bajaj Finance, IIFL Finance, and Ugro Capital, have tightened their lending stance towards small enterprises, pivoting to secured lending, increased borrower scrutiny, and higher buffers for credit losses due to rising loan delinquencies and gross bad loans. They expect slower MSME loan growth, with Bajaj Finance forecasting 11-12% for FY26, down from a previous 20%.