RBI Lowers Risk Weight on Microfinance Consumer Credit to 100% From 125%
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- By Chetan Kulasri
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- Last Updated on 27 February, 2025
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Circular No. RBI/2024-25/119 DOR.CRE.REC.63/21.06.001/2024-25, Dated: 25.02.2025
The RBI has reviewed risk weights on microfinance loans. Microfinance loans classified as consumer credit will attract a 100% risk weight instead of the 125% applied to other consumer credit. All microfinance loans extended by RRBs and LABs shall attract a risk weight of 100 %. The above instructions shall be applicable from 25.02.2025 in respect of outstanding as well as new microfinance loans.
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