Lenders will "handhold" retail and MSME borrowers, similar to the Covid pandemic support. The government is considering a 3-6 month loan moratorium for affected businesses.
The crisis could lead to increased loan defaults, prompting consideration of a 3-6 month moratorium on loan repayments.
Gold loans are showing a significant surge, indicating continued popularity as a source of immediate funds. As of February 2026, loans against gold jewelry increased by 128% to Rs 4.
