The study reveals about the microfinance markets worldwide, over-indebtedness among borrowers and households has emerged as an important concern. Overindebtedness, measured in terms of sacrifices made by households, is high in both rural and urban India. Factors statistically significant in explaining over-indebtedness are the borrower’s age and financial literacy; the household’s entrepreneurial activity, income level, and spatial location; and the proportion of dependent members in a household   (Ray et al., 2019)¹. NBFCs include transparency in interest rates and due diligence in understanding the repayment capacity of the borrower (Arpita Sharma, 2014)². The legal entities provided credit and credit linked facilities to the small and marginal farmers at a relatively lower cost with minimum formalities (Amiya Kumar Mohapatra, 2014)³. There is a vast scope for micro entrepreneurial activities in rural as well as urban areas (Suresh, 2015)⁴.

Keywords: financial crisis, bank credit, lending policies, customer satisfaction