Microfinance Industry

On a sequential basis, the portfolio contracted 1.4 per cent, while active loans and the live customer base fell 6.5 per cent and 3.9 per cent, respectively.

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

Industry body MFIN aims to strengthen borrower identification and credit underwriting by encouraging lenders to adopt PAN and CKYC records within an aspirational 18-month timeline

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

Bandhan Group founder Chandra Shekhar Ghosh discusses microcredit, women entrepreneurs and digital lending, stressing relationship-based lending and expansion into insurance and technology

The government has eased norms under the microfinance credit guarantee scheme to boost fund flow to smaller lenders as utilisation of the ₹20,000-crore corpus remains low

Analysts say CreditAccess Grameen enters FY27 as a fundamentally superior franchise emerging from a severe MFI stress cycle, with its asset quality restored and growth re-ignited.

Muthoot Microfin reported a healthy provisional business update for Q1FY27, with AUM rising 18% YoY to ₹14,457 crore, supported by continued portfolio expansion and strong disbursement momentum.

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

CRIF High Mark data showed the microfinance industry's loan portfolio expanded in May as delinquencies eased further, while fresh loan disbursements remained broadly stable

Asset quality improved and earnings strengthened in Q4FY26, but rural stress, microfinance exposure, West Asia tensions and monsoon risks could weigh on NBFCs in FY27

The SIDBI-Equifax report said the sector's portfolio grew 3 per cent quarter-on-quarter in the March quarter, while 30-plus delinquency fell sharply

India's microfinance model has reached its limits; sustainable growth now requires a shift towards meso-finance, stronger savings buffers, and less reliance on group lending.

Large microfinance institutions are diversifying into retail and MSME lending as regulatory changes and recent sector stress reshape growth strategies

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

Microfinance lender expects stronger growth and better collection efficiencies as it expands branches and diversifies operations

The microfinance sector's gross loan portfolio rose sequentially in Q4FY26, supported by higher loan originations, bigger ticket sizes and improving asset quality

This trend suggests that lenders are prioritising credit discipline over growth, particularly in a macro environment marked by cautious lending

Sa-Dhan launches Sankalp 3.0 guardrails to improve governance, risk management and customer protection in microfinance sector amid improving asset quality