ICRA: ICRA flags rising risks in unsecured securitised pools; collections of microfinance dropped to 90% in Q3 FY25

The collection efficiency for unsecured asset classes like microfinance, personal loans, and unsecured SME loans has seen a decline in recent months due to economic slowdown and borrower overleveraging. In contrast, secured asset classes have maintained healthy performance. The recent RBI repo rate cut could ease cash flow burdens and support better collection efficiencies, especially for vehicle loan pools.