Business, Finance, Economy News Live Updates:Between March and October 2024, the overall microfinance portfolio of lenders affiliated with Sa-Dhan, the Self-Regulatory Organization (SRO) for Microfinance Institutions, dropped by 10%, from ₹4.43 lakh crore to ₹4.04 lakh crore. This decline follows the adoption of Sa-Dhan’s “Seven Sankalps” guidelines, issued in July 2024, which aimed to reduce borrower leverage and tighten lending practices. The guidelines, which include capping exposure to households with loans above ₹2 lakh and enforcing stricter credit checks, have led to a significant unwinding of leverage and a 29% reduction in quarterly disbursements. Sa-Dhan’s measures are credited with promoting greater discipline within the sector, with corrective actions already visible in credit bureau data and field verification.
