India, Nov. 19 -- If you are in debt due to retail personal loans, you may be in a bit of a spot. If you are a lender whose exposure to such unsecured loans is high, you may be in trouble. According to a recent report by S&P Global Ratings, stress levels in the unsecured retail lending segment, which includes personal loans and microfinance, is expected to hit its highest point in this fiscal year (2025-26). In its 'Global Banks Country-by-Country Outlook,' it states that the problems and challenges are visible in the loan portfolios of small and medium enterprises (SMEs), and commercial vehicle lending.

Early delinquencies or non-payments in these two areas have begun to rise across nations. The rapid scale-up of the unsecured loan prod...