Microfinance Portfolio Shrinks 5% YoY to Rs 3.28 Trillion in September

Business Standard · business

India's microfinance portfolio saw a 5% year-on-year decline, reaching Rs 3.28 trillion by September 2026. The number of active loans also fell significantly by 22.4% to 9.6 crore, indicating a shrinking lending base. The live customer base decreased by 15% year-on-year to 6.4 crore. Despite this contraction, asset quality showed improvement, with the 91-180 days past-due category reducing to 0.8% from 2.7% a year prior. Disbursements in the September quarter were Rs 56,956 crore across 90.3 lakh loans.