Capital crunch, poor asset quality topple small microfinance institutions

Non-banking finance company-microfinance institutions with low capital buffers urgently need funding from banks and bigger, cash-rich, non-bank lenders to ensure they remain in business, people familiar with the matter told ET.VFS Capital, one of India’s oldest microfinance firms where Others that have defaulted on bank loans lately include Navachetana Microfin Services (Karnataka) and Arth Finance (Rajasthan).Live EventsLegacy StressInditrade Microfinance (Maharashtra) is also on that list, said multiple ...