As discussed in the paper, also Nepali MFIs are facing increasing non-performing loans because of their focus only on loan growth, incentivizing for expansion, multiple lending, and weaker internal control and loan utilization. As you observed, MFIs should care about financial health of their borrowers, but we can't expect this to happen from commercial MFIs. For that purpose, social business type MFIs should be established.
As discussed in the paper, also Nepali MFIs are facing increasing non-performing loans because of their focus only on loan growth, incentivizing for expansion, multiple lending, and weaker internal control and loan utilization. As you observed, MFIs should care about financial health of their borrowers, but we can't expect this to happen from commercial MFIs. For that purpose, social business type MFIs should be established.