MFI Crisis To Hit The Markets Soon? | Sridhar Sivaram Rings Red Alert

Sridhar Sivaram, Investment Director at Enam Holdings, discusses the current MFI crisis and FII flight? Are the stars finally aligning in favor of Indian banks? Watch the video for full insights.
#bank #loan #sbi
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[@thameenasaif4184]

Being workong in PSU, we have seen this..
SHG group having loan with us for around 20 lakhs if given another loan by micro finance institutions for another loan for the same SHG group which leads to double finance which is going to become disaster when comes to repayment..

[@vijaykumarsingh1190]

Good narrative on a burning issue.

[@yasminsangomsumpham2080]

Netting is done in wholesale lending as well.

[@OakSantosh]

Some MFIs are going to go bust.

[@vineeshp6]

Something bad is gonna happen 😢

[@devilznik5595]

Hahaha a chaiwala received a message of 1.5 lkh loan instantly ...he applied and received it immediately and since than he has been see in jua ka adda and his chai shop is closed ...so what do you expect to happen to those mfi 😂

[@humenbot24]

Problem with penny brains is this story which he wrote is not applicable to each and every customer.
MFI for example in nearby my areas be it a hwker or tea stalls, took loans worth 1-2lks paid it back took another loans worth 5 lakh & paid 80% of that too.
Real problem arises where the loan is distributed. If you distribute it in non developing state the. Its settlement is difficult. But if its in a real good business in good demographic then outcome will be positive.

[@ankurs_LifeOn]

Seems like sub prime mortgage crisis

[@makc3887]

What is MFI crisis

[@debratbandyopadhyay8860]

too mny unsecured loans are given out by Microfinance Institutions and that may cause a credit crunch and markets slowing for a while or it could be much worse

[@gordonfernandes6873]

What is MFI meaning 🤔 ??

[@arjeet345]

Microfinance institution

[@Tamilpaiyan2024]

Thanks I was wondering if it was Mutual fund Institutions,but context being discussed was different.

[@sourav047]

It's micro finance institution, where the loan has been given to poor category of people without any collateral with a higher interest rate. It's very lucrative to the people who cannot afford a loan from bank because of so many documentation and stringent process. Here, they don't need to provide many documents and can be paid with easy installments but problem is that there is a lots of chances of default since the interest rate is very high and the income of the borrower is volatile

[@KonkaniMaratha]

Lower intrest rates boost consumption

[@ganeshshenoy3495]

Always pessimistic views

[@vinodh3351]

Not pessimistic but warning you to be prepared and caution is the better word you can use too much of optimism is also not good

[@hakim5939]

What pessimistic? Look at NPAs of these companies.

[@Tamilpaiyan2024]

How can we always assume everything is going right and be not bothered? Is it not a concern that a same individual or company is able to get loans from every other MFI probably without much effort despite problems facing during repayment.