NBFC-MFIs drive sharp rise in microfinance originations in Q4: Report

NBFC-MFIs led the growth in microfinance originations during Q4FY26, while higher average ticket sizes and continued lending to existing borrowers supported disbursement momentum

Microfinance originations value grew by 25.8 per cent quarter-on-quarter (Q-o-Q) to  ₹77,555 crore in the January-March quarter of FY26 (Q4FY26), driven by continued momentum in disbursements across lender types over the past few quarters. The volume of originations also increased by 22.8 per cent Q-o-Q to 126.1 lakh loans, according to CRIF High Mark MicroLend Report.

 

The growth in originations value was also aided by an increase in the average ticket size of loans, which stood at ₹61,500 at the end of March 31, 2026, up 18.3 per cent year-on-year (Y-o-Y) from the year-ago period, when it was ₹52,000. Sequentially, it was marginally up from ₹60,000.

   

Also, 57 per cent of originations in Q4FY26 were extended to existing borrowers as part of their next loan cycle with the same lender, almost at the same level on Y-o-Y basis.

 

NBFC-MFIs drove the largest increase in originations, with Q-o-Q growth of 33.8 per cent in value and 29.7 per cent in volume, closely followed by banks and small finance banks (SFBs). NBFC-MFIs also continued to maintain and expand their share of originations value, constituting nearly half of total originations in Q4FY26. Banks maintained a stable originations value share in Q4FY26 at around 26 per cent, with no further decline. SFBs also held steady, sustaining their share at around 13.5 per cent on a Q-o-Q basis.