Microfinance

Microfinance loans are showing reduction in stress but growth isn’t in sight yet.

Bajaj Finance reports Rs 1,556 crore microfinance loans in Q1FY26 after separating MFI from Rural B2C Portfolio

In April-June quarter, Bajaj Finance has separated microfinance business from the Rural B2C loans. The company is sourcing MFI business through MFI branches.

Chart of the Day | Microfinance in India: Is the worst over?

India's microfinance sector teeters between recovery and ruin as NPAs soar to over Rs 55,000 crore, testing the resilience of microlenders

Credit-life policies fall 30% in FY25 for top life insurers, as they pull back from MFI market

Major players such as HDFC Life Insurance, ICICI Prudential Life Insurance, SBI Life Insurance, and Bajaj Allianz Life Insurance have significantly cut their exposure to group product category in FY25.

Are the problems facing microfinance firms just a blip?

Problems arising from overaggressive lending can be set right through smart regulation. The sector is meant to serve as a pathway to inclusion for economically challenged sections of the population. However, for its target customer base, repayment issues can arise from low incomes as they don’t provide a cushion for shocks. It begs the question if microfinance needs a model revamp and not just a regulatory tweak

Microfinance Q4 a wake-up call for companies, policymakers

India’s microfinance sector is reeling under a client drop, shrinking loans, and rising defaults

Microfinance 'suffering' from high indebtedness, coercive recovery practices: RBI Deputy Governor Rao

The MFIs must enhance their credit appraisal frameworks to ensure borrowers are not over-leveraged, RBI Deputy Governor said. They must also refrain from 'coercive or unethical' recovery practices, and deliver services a manner that is both 'responsible and sustainable'.

Data Story: What is a bleeding microfinance industry telling us?

Surplus liquidity and easing interest rate environment are potent temptations for lenders to stoke up microfinance again.

Crisis of confidence at IndusInd Bank, say analysts, lender assures clean-up is underway

While IndusInd Bank has said that all known discrepancies have now been accounted for, and auditors have combed through its financials extensively, analysts and the market remain wary.

RBL Bank's MD and CEO sees balance sheet risk reducing, plans to leverage scale across products

Whether microfinance, credit cards, mortgages or other secured loans, Kumar is clear that all segments will continue to remain relevant for the bank and contribute amply to the bottom line.

Reimagining Microfinance’s Journey: Old roots, new routes

Microfinance in India is evolving amid digital disruption, changing borrower needs, and regulatory shifts. Embracing technology, personalised credit, and strategic partnerships is key to sustaining its role in empowering underserved communities and driving inclusive growth

Credit card segment to reach pre-embargo levels in 6 months, Kotak CEO Vaswani says

Kotak expects steady performance in its personal loan portfolio and credit card segment in FY26, CEO Vaswani says

L&T Finance targets 20% growth in FY26, eyes MFI recovery by Q2: CEO Roy

CEO Roy says, the challenges in the microfinance (MFI) sector are coming to an end, with normalcy expected by Q2 FY26

NBFCs poised to grow in FY26 despite challenges in microfinance & personal loans

Analysts feel that while the MFI sector has been grappling with asset quality stress, the short-term nature of these loans suggests that the worst could be over, unless macroeconomic conditions worsen.

IndusInd Bank presses pause button on onboarding new MFI customers

The decision to pause onboarding new MFI customers may have come after the RBI's feedback. However, the bank has denied the same.

Asset quality improving across MFIs but recovery will be gradual, says Investec

Investec identified CreditAccess Grameen, Ujjivan Small Finance Bank, and L&T Finance as the strongest performers in the MFI space

Chart of the Day: Two numbers behind RBI’s move to lower risk weights on bank loans to NBFCs, MFIs

Microfinance entities have seen their loan book shrink in the third quarter of FY25

Microfinance sector’s portfolio at risk 31-180 days rises sharply to 6.4%

Banks and small finance banks’ PAR 31-180 rose to 6.8 percent and 7.2 percent respectively as of December 31, 2024, compared to 2.3 percent and 2.8 percent, a year ago.

Exclusive Interview | Have seen material improvement in delinquency trends since November: Satin Creditcare CMD

While banks have slowed down on lending, foreign DFIs (development finance institutions) continue to lend to the microfinance sector, albeit selectively, said HP Singh

Karnataka MFI ordinance: Collections likely to get impacted in state

While Karnataka may not turn into a no-go zone for microfinance lenders, industry executives caution that, in the near-term, there could be some disruptions in operations. 

Fusion Finance’s losses swell to Rs 719 crore in Q3

For a second quarter in a row, auditors have flagged the company’s ability to remain a going concern without waivers from lenders or securing sufficient funds

Karnataka Governor's rejection of MFI Ordinance a timely wake-up call for government

An excessive punitive approach not only risks stifling the microfinance sector but also threatens to undermine the very credit ecosystem that sustains the state's most vulnerable populations

Budget 2025: 3 steps that can help empower microfinance industry

According to an NCAER study, microfinance contributes 3 percent to the GVA. It fosters entrepreneurship and supports livelihoods and can play a key role in India's growth story

Karnataka govt mulls stringent laws to regulate microfinance companies

With reports emerging from various parts of the state about people dying by suicide due to the ”atrocities” of loan recovery agents, Chief Minister Siddaramaiah has convened a meeting to address the issue

Budget 2025: MFIs seek refinancing window, credit guarantee scheme amid rising stress

The microfinance industry came in the news a couple of months back because of rising concern over lenders charging higher interest rates to borrowers