Unsecured business loans shows signs of stress
A joint report by CIBIL and SIDBI indicates that unsecured business loans to MSMEs are showing increased signs of repayment stress. While overall commercial lending remains healthy, the rise in 90-day overdue payments in the unsecured segment warrants attention.
Why it matters
The growth of small-ticket unsecured business loans poses a potential risk to financial stability if repayment trends continue to deteriorate.
Signs of delay in loan repayment has started to emerge in some segments of business loans even as the overall number suggests higher asset quality.
The article relies on financial data and industry reports to present an objective assessment of economic trends.
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