New Delhi, Feb. 18 -- Small-ticket single loans, that are less than Rs.10,000, are reporting increased defaults compared to large loans, and it is causing anxiety to money lenders.

It is impacting the borrowers of urban as well as rural small locations. It is imperative for borrowers as well as lenders to find out why these kinds of defaults are occurring so that risks may be avoided and lending can be made well judged and careful.

These issues highlight the importance for improved risk assessment techniques, stronger monitoring methods, and individualized repayment schemes to counter the trend of increasing default rates in the small-ticket personal loan market.

Moreover, borrowers must be taught money management and lenders implement...