Chapter 2 - Section 2.1 - SubSection 2.1.1Key Performance Highlights

Loan Outstanding: As of March 31, 2025, the total microloan outstanding across all micro-lenders stood at `3,81,225 Cr., reflecting a year-on-year decline of 14%. NBFC-MFIs continued to remain the largest provider of microcredit, accounting for 39% of the total market share, followed by Banks at 32%. Small Finance Banks (SFBs), NBFCs, and Others represented 16%, 12%, and 1% of the market share, respectively.

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2.1.1 Key Performance Highlights

  • Loan Outstanding: As of March 31, 2025, the total microloan outstanding across all micro-lenders stood at ₹3,81,225 Cr., reflecting a year-on-year decline of 14%. NBFC-MFIs continued to remain the largest provider of microcredit, accounting for 39% of the total market share, followed by Banks at 32%. Small Finance Banks (SFBs), NBFCs, and Others represented 16%, 12%, and 1% of the market share, respectively.
  • Loan Accounts and Unique Active Borrowers: By the end of March 2025, micro-lenders together serviced around 1,399 lakhs loan accounts spanning over 750 districts, registering a year-on-year decrease of 13%. The number of unique active borrowers was 828 lakhs, marking a 5% decline compared to the last financial year. The top five states collectively accounted for 54% of the industry loan accounts.
  • Disbursement and Lending: During FY 2024-25, all micro-lenders collectively disbursed ₹2,84,130 Cr. through 553 lakh loan accounts, compared to ₹3,86,287 Cr. disbursed through 836 lakh loan accounts in FY 2023-24. This represents a year-on-year decline of 26%, reflecting a more cautious lending approach by microfinance institutions in response to a lack of funding support, and rising delinquencies.
  • Asset Quality:There had been deterioration in the portfolio quality under all buckets, i.e., PAR 30 (30-179 dpd), PAR 60 (60-179 dpd), PAR 90 (90-179 dpd), and PAR 180 (180+ dpd) as of 31st March 2025, as compared to the position in the previous financial year, with PAR 30+ dpd surging to 6.2%, up significantly from 2.1% in the last financial year. There were several factors disrupting the borrower’s repayment capacity, including an economic slowdown, increased borrower indebtedness, rural distress, climate change events, natural disasters, and a prolonged general election.
  • Average Balance per Loan Account: The average balance per loan account for the microfinance industry was at ₹27,251 as on 31st March 2025, as against ₹27,441 at the end of the FY 24, registering a Y-o-Y degrowth of 1%. The number remained almost the same, as the percentage reduction in the overall loan outstanding and the number of loan accounts was almost the same. In Y-o-Y comparison, the average balance per loan account had increased for all micro-lenders, except for SFBs, which recorded a negative growth of 9.4%, causing an overall slight reduction.
  • Average Ticket Size (ATS): Despite the slowdown in disbursements, the average loan amount disbursed per account increased by about 11% in FY 2024-25, reaching ₹51,369. This indicated that while new loan sanctions were fewer, the sanction of the loan was more selective, with a higher value of each loan.