Rising Defaults on Micro Loans Secured by Property
MUMBAI: TransUnion CIBIL’s December 2025 Credit Market Report highlighted a year-on-year increase in early-stage delinquencies for micro-loans secured against property (micro-LAP) and micro-housing loans. The report indicates that lenders are now focusing on borrowers with credit scores exceeding 750 and a solid credit history. According to the report, delinquency rates in the micro-LAP segment rose by 45 basis points to 3.3% as of September 2025. Early delinquencies, defined as loans overdue by 90 days or more within 12 months, increased by 29 basis points year-on-year to 2.2% for loans originated in the quarter ending September 2024, which is notably higher…