<ul><li>Karnataka is witnessing a surge in loan delinquencies, with nearly 8% of borrowers having loans from five or more institutions.</li><li>The crisis has been exacerbated by confusion over a recent ordinance passed by the Karnataka government, fueling defaults.</li><li>The bill specifically targets unregulated microfinance entities but has inadvertently impacted the organised sector as well.</li><li>Factors contributing to defaults include over-borrowing, last year's heat wave, reduced economic activity, inflation, and diminished purchasing power.</li></ul>

Karnataka’s organised microfinance sector grapples as defaults surges post new ordinance

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