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      Question

      What was the MFI sector’s credit cost in FY25, as

      reported by ICRA?
      A 2.3% Correct Answer Incorrect Answer
      B 3.5% Correct Answer Incorrect Answer
      C 4.0% Correct Answer Incorrect Answer
      D 5.5% Correct Answer Incorrect Answer
      E 6.9% Correct Answer Incorrect Answer

      Solution

      Credit costs for Microfinance Institutions (MFIs) spiked to 6.9% in FY25, up from 2.3% in FY24, due to large-scale loan write-offs and provisions. The costs are projected to moderate to 4–4.5% in FY26 and further to 3–3.5% in FY27.

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