Microfinance Pulse

The 24th edition of the MFI Pulse report captures the data for period up to June 30, 2025.

The microfinance industry's total portfolio outstanding as of end-June 2025 stands at ₹3.07 lakh crore, supporting 10 crore active loans and 6 crore unique borrowers. The industry continues to go through a period of consolidation with the portfolio witnessing a contraction of 22% YoY and 8% QoQ.

NBFC-MFIs continue to be the dominant contributor to the portfolio by contributing almost 40%.

While the delinquencies (30-179 dpd) have recorded a significant rise from 2.9% as of June 2024 to 6.1% as of June 2025, it is encouraging to note that there is a sequential decline in the figure from 6.6% as of March 2025.

The industry remains fairly concentrated in geographical terms, with the top 10 states accounting for nearly 85% of the total portfolio. The portfolio in the Aspirational Districts comprise around 15% of the aggregate microfinance where the delinquency trends are in line with that of the overall industry.

The report has initiated a new overlap analysis which reveal a significant overlap between MFI and retail borrowers. The data which is based on a representative sample shows that 39% of microfinance borrowers also have availed various kinds of retail loans, namely gold, housing, business and personal loans (secured or unsecured).