Microfinance Sector Portfolio Contracts, Facing Asset Quality Issues

The microfinance sector, which gives small loans, is facing challenges.

The total amount of loans given out has shrunk, and some people are having trouble paying them back.

This is because people have borrowed too much from multiple places.

Lenders are now being more careful about who they lend to.

Although there are difficulties, experts are seeing a move towards more sustainable practices and higher-value loans.

The sector is working to create a more stable environment.