Picture used only for representative purposes Photo Credit: Getty Images/Istockphoto
According to CRIF HIGH Mark, credit, credit loan, portfolio gross loans (GLP) in the microfinance industry in Tamil Nadu has decreased in the fiscal loan.
According to CRIF data, GLP in Tamil Nadu decreased by 19.6% to 46,800 GBP in the fiscal year 2025, from 58,200 crore in the fiscal year 2024.
Tamil Nadu (-7.7%, quarterly base), followed by Karnataka (-7.0% quarterly base), recorded a steep decline in GLP. State level data has revealed remarkable contractions in the portfolios of Tamil Nadu and Karnataka, which was influenced by the expected regulations and increased regulatory interference in collection procedures, the credit office said.
Overall, the GLP of the microfinance industry was from March 2025 381.2 to GBP, which meant a year -on -year decline of 2.6% and a year -on -year decline in 13.9%. The Tamil Nadu government proposed to go out with legislation focused on the procedures of fair assembly and recovery that signals further regulatory shifts in this industry, the further impact of which is not yet seen, CRIF said.
In April 2025, the legislative assembly of Tamil Nadu approved the Money Lending Act of Tamil Nadu (prevention of coercive actions), 2025. The aim of the law is to protect and alleviate economically weaker and vulnerable groups and individuals that are not available like microfinance institutions and for the agencies with money that has money with money that has money with money that has money that has money that has money with money that has money with money that has money with money that Money that has money that has money that has money that has money that has money that has money that has money that has money that has the agencies.
“The decrease in portfolio gross loans was in accordance with the national trend. In some parts, many factors, including the elections, the impact of waves and cyclones, as well as excessively the lever of debtors in certain pockets that affect enforcement,” says Jiji Mammena, CEO and CEO of Sa-Dhan. The proposed legislation Tamil clearly excludes regulated entities.
He argued that with the submission of a bill, some people tried to use it in certain pockets by refusing to pay; Overall, however, the business remained normal.
Sa-Dhan has made a representation to the State Government concerning the inclusion of all types of creditors in the “coercive” clause in the bill that can be distorted. “We were looking for suitable changes when the rules were framed to eliminate regulated entities from the coercive clause,” he added.
Addi Singh, Chief Strategy Director, Satin Credit Network LTD, which has a 227 GBP Crore portfolio in Tamil, said during the initial discussions around the bill: “We accepted a cautious approach by paying out the payout in Tamil Nadu to assess the situation. However, to get into operation. “” “” “
Published – 2 June 2025 12:46 PM
