The collection efficiencies of non-banking finance companies (NBFCs) and other finance companies in recovering micro-finance-focused loans and unsecured SME loans in India have improved during the nine months of the current financial year. Disclosing that the collection efficiency of these entities has been close to the pre-Covid levels, leading rating agency ICRA said loan recoveries in these segments have been quite robust and hovering in the range of 97% to 105% as per its analysis. The agency attributed this improvement to solid domestic growth, which has supported cashflows of individuals and small businesses as they emerge from the stress witnessed during the Covid period.
