 "Microfinance")
The Uttar Pradesh microfinance industry — which provides credit to the bottom-of-pyramid borrowers, including 5.3 million women — is currently estimated at ₹32,500 crore.
In the quarter ending September 30, 2025, microfinance institutions (MFI) clocked a growth of almost 4 per cent, with quarterly lending at ₹7,258 crore.
However, current outstanding of ₹32,584 crore at the end of September 30, 2025 was down 20 per cent, compared to over ₹40,000 crore at the end of September 2024.
According to UP Microfinance Association (UPMA) Chief Executive Officer Sudhir Sinha, the microfinance industry in the state has contracted on a year-on-year basis, in line with a similar trajectory in other states.
"Now, the microfinance industry is again showing the green shoots of growth with the latest quarterly lending increasing by 4 per cent in UP. We hope that it retains the momentum," he noted.
Meanwhile, the average ticket size of microfinance in UP has increased to ₹57,822 in September 2025 from ₹48,528 in the same period last year, indicating a growth trajectory.
According to a latest UPMA report, the NBFC-MFI tops the microfinance lending in UP, with 47 per cent contribution, followed by similar advances by private banks, small finance banks (SFB) and NBFCs.
The Eastern UP region tops in microfinance with roughly 46 per cent share, followed by Western UP and Central UP regions with 40 per cent and 14 per cent share, respectively.
MFIs play a vital role in the financial inclusion by providing largely collateral-free lending support to small borrowers, low income individuals and self help groups (SHG), without much paperwork.
Meanwhile, UPMA hosted its 8th annual microfinance conference in Lucknow to deliberate on contemporary issues facing the MFIs in the backdrop of growing digital economy and fintech revolution.
The conference featuring former RBI deputy governor M K Jain emphasised how MFIs are empowering women, promoting self-employment, and strengthening economic activities across both rural and urban regions.
According to UPMA, the overall 30+ delinquency rate for UP declined in September 2025, compared to the same period last year, with NBFCs exhibiting the lowest and most stable delinquency rate.
30+ delinquency means that a payment is at least 30 days past its due date, indicating an account is overdue.
The term is used in finance and credit reporting to categorise accounts, and is a stage of non-payment that can negatively affect credit scores and slapping of a fine.
