Microfinance Firms

The microfinance lender said unauthorised transactions were made from one of its bank accounts on November 1, and it has sought fund recovery and the freezing of beneficiary accounts

At the Business Standard BFSI Summit in Mumbai, microfinance industry leaders said collections were improving as lenders explored secured and individual loans to meet customers' changing needs

The sector had been under stress for the last two years after rapid credit expansion left many borrowers over-leveraged, driving up defaults and prompting lenders to tighten underwriting standards

The initiative aims to improve governance and operations as smaller MFIs say access to bank funding remains constrained

India's microfinance sector is recovering as defaults fall, loan sizes rise, and government guarantees extend to boost cheaper credit to small borrowers

Crisil Ratings says lending guardrails have improved portfolio quality and credit discipline, leading to a sharp reduction in overdue build-up in microfinance securitised pools

The microfinance industry body expects stronger participation in the government's credit guarantee scheme after its validity was extended to August 31, 2026

While overall asset quality improved in April, a rise in early delinquencies and slower loan disbursals indicate lenders remain focused on portfolio discipline

India's microfinance sector saw slower loan growth and disbursements in FY26, though asset quality improved sharply amid tighter underwriting and credit monitoring

Disbursements under the scheme are yet to begin, as microlenders had flagged that the ₹300 crore cap for large institutions was inadequate

CreditAccess Grameen's gross loan portfolio (GLP) stood at ₹29,590 crore in the March 2026 quarter (Q4FY26), up 14 per cent from ₹25,948 crore in the year-ago quarter

Centre's credit-guarantee scheme offers temporary relief to microfinance institutions, but sustainable recovery will depend on improved lending practices, risk management, and sector discipline

Microfinance lenders are expanding into secured products such as gold, mortgage and MSME loans as RBI's revised norms and asset quality pressures push them to diversify portfolios

Experts are calling for a reimagination of microfinance as credit costs rise with higher risk provisions and writeoffs

Microfinance institutions (MFIs) need to rebuild credibility and confidence to achieve sustainable growth, a joint study by consultancy firm PwC and Sa-Dan, a self-regulatory organisation (SRO) of the sector, said. Microfinance, which is principally underpinned by trust among the stakeholders, who are the borrowers, field officers and lending institutions, has become more transactional, the study said. Major setbacks like demonetisation and the Covid pandemic have further exacerbated the decline in group culture in microfinance, which has had a widespread impact on repayment discipline and public confidence, the study pointed out. "Rebuilding credibility and confidence remains a major challenge to achieving sustainable growth", the study said, adding that empowering and equipping customers with adequate information is crucial in regaining their trust. According to the study, MFIs have also experienced declining support from external stakeholders, including investors and refinancers

The microfinance lender's profit drops 50.5% YoY amid lower interest income; sequential growth aided by stable margins and slight loan portfolio uptick

Industry leaders at the Business Standard BFSI Insight Summit said that while collections and rural affordability are improving, liquidity support is critical to sustain the sector's ongoing recovery

MFI stocks india list: As the MFI industry navigates through the transitional phase, Avendus lists why it is bullish on the sector from a medium-to-long term perspective, and what should investors do

Stock down 4.4 per cent on BSE; eyes 20 per cent AUM growth in FY26

The stock of the company closed six per cent lower at Rs 305.2 per share on BSE