Provisioning for Loan Impairment in MFIs

• by Raj Kumar and Anil Paul
• Aug 10, 2009
• 1 min
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This IFN delves into the importance of this for the microfinance sector, highlights current challenges, and possible ways forward in provisioning for loan losses for Indian MFIs

Maintaining adequate reserves to cushion against future loan losses has again been highlighted in the wake of recent financial crisis. This India Focus Note delves into the importance of this for the microfinance sector, highlights current challenges, and possible ways forward in provisioning for loan losses for Indian MFIs.