Defaults on loans to small and medium enterprises (SME) by finance companies in India are expected to rise in the coming quarters since hardening interest rates are increasing the repayment burden, rating agency Moody’s has said. Also, options to refinance such loans for SMEs are limited, it added.
Rising interest rates, increasing costs amid high inflation and a muted operations environment for small businesses have weighed on SME borrowers’ ability to meet debt repayments over the past year.
https://www.business-standard.com/finance/news/sme-loan-defaults-to-rise-for-nbfcs-in-the-coming-quarters-moody-s-123041700317_1.html