Banks in India are experiencing extremely high default rates, upwards of 40%, on their micro-loans in rural areas of the country says a recent Business Standard report from Mumbai. This news comes at a time when smaller microfinance institutions (MFIs) and non-governmental organizations (NGOs) are lending money with repayment defaults as low as 10%. The article did not mention any specific banks; it simply made the general distinction between “banks” and “non-governmental agencies.” Neither the article nor the authorities that were quoted quantified or substantiated their claims, and further information is publicly unavailable to support or refute their assertions.
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