NBFCs top growth rate in micro-finance at 27.6% Y-o-Y by Sept-end FY25

Non-banking financial companies (NBFCs) clocked the highest growth rate in the micro-finance business at 27.6 per cent year-on-year at September-end FY25 followed by banks at 10.6 per cent. NBFCs-microfinance institutions (or NBFCs-MFI which are dedicated to the business) came in at 9.2 per cent while that of small finance declined by 5.6 per cent.  The portfolio-at-risk 31-180 days-past-due has shown a deterioration across all entity types in comparison during the same time period, according to Micro Finance Industry Network (MFIN) in the 51st issue of “Micrometer”. 

  The micro-finance business has come under stress of late and MFIN – the self-regulatory organisation for the sector) has released guidelines for its members to help strengthen underwriting of loans. These guidelines pertain to a more accurate assessment of the monthly repayment obligations of the borrowers.