Microfinance borrowers’ repayment behavior may face challenges from inflation and reduced household cash, though the West Asia conflict hasn’t directly impacted the sector. New state legislations in Karnataka, Tamil Nadu, and Bihar are tightening oversight on lending practices. While Karnataka saw a collection dip post-ordinance, others adapted. Guardrails on new loans have significantly reduced overdue build-up, improving portfolio performance through prudent underwriting and stricter pool selection.