Microfinance borrowers take bigger loans as ticket size rises 17.5%: CRIF

Average microfinance loan ticket size rose 17.5 per cent to ₹63,100 in Q2FY27, while disbursements grew 5.1 per cent despite a contraction in the industry's loan portfolio

Microfinance borrowers are increasingly accessing larger loans, with the average ticket size rising 17.5 per cent year-on-year (Y-o-Y) to ₹63,100 in the July - September quarter (Q2 FY27), as loans above ₹1 lakh accounted for a growing share of originations, according to CRIF’s September 2026 MicroLend report.

 

The share of loans in the ₹80,000-₹1 lakh category rose to 18.5 per cent in Q2 FY27 from 14.7 per cent a year earlier. Loans above ₹1 lakh accounted for 15.1 per cent of originations, compared with 11.2 per cent in the corresponding quarter last year. Disbursement value in this segment grew 41.3 per cent Y-o-Y.

 

 

Loans in the ₹50,000-₹80,000 category continued to account for the largest share of origination value at 41.3 per cent.

 

Overall microfinance disbursements grew 5.1 per cent Y-o-Y to ₹56,956 crore during the quarter, although they declined 7.5 per cent sequentially. First-time borrowers accounted for 19.7 per cent of sanctioned loans and 16.5 per cent of the sanctioned amount.

 

The number of active loans fell 22.4 per cent to 96 million during the same period, while the industry’s gross loan portfolio (GLP) declined 5 per cent to ₹3.28 trillion. The contraction suggests that growth in average loan size has partly cushioned the impact of a shrinking borrower and loan base. The segment’s live customer base stood at 64 million borrowers. Average exposure per loan increased 22.7 per cent Y-o-Y to ₹34,200.

 

NBFC-microfinance institutions (NBFC-MFIs) continued to lead the market, with a portfolio of ₹1.47 trillion and a share of 44.7 per cent in September, up from 38.8 per cent a year earlier. Their portfolio grew 9.4 per cent Y-o-Y to ₹1.47 trillion, while banks’ share declined to 21.8 per cent from 31.3 per cent.

 

For the overall sector, asset quality remained stable, with delinquency in the 1-30, 31-90 and 91-180 days past due (DPD) categories each below 1 per cent. The portfolio at risk in the 1-30 DPD was slightly up to 0.8 per cent as compared to 0.7 per cent in June quarter.  The 31-90 DPD and 91-180 DPD stood flat at 0.8 per cent.

 

However, banks reported a marginal increase in PAR (portfolio at risk) in the 31-90 DPD category to 1 per cent as of September 30, 2026, from 0.8 per cent as of June 30, 2026. NBFC-MFIs also saw a slight increase in PAR in the 91-180 DPD category to 0.9 per cent from 0.8 per cent over the same period.