Microfinance firms are currently facing a significant increase in borrowers who have taken on too much debt, which is similar to past crises.

This situation raises concerns about the sustainability of lending practices that have encouraged clients to borrow excessively.

The 2010 crisis, characterized by high interest rates and aggressive collection methods, resulted in strict regulations that effectively expelled private microfinance institutions from the state.

As the current situation develops, the consequences of overleveraging may lead to a reassessment of lending strategies and support mechanisms for borrowers in the microfinance sector.

Industry experts are closely monitoring the situation, as borrower distress could have an impact on the wider financial system.

These ongoing developments emphasize the importance of responsible lending practices to protect both borrowers and the financial institutions that serve them.