- Financial Express
Rising rates may pose risk to MSME loan portfolio
A rising interest rate may pose a risk to the micro, small and medium-sized enterprises (MSME) portfolio of lenders considering that a floating interest rate is applicable to these borrowers, say analysts.
“A lot of MSMEs are operating in the export market. So, if there is a slowdown in the global economy, these entities could see an elongation of working capitals or a decline in their revenues,” said Anil Gupta, Senior Vice President & Co-Group Head, ICRA.