Chapter 2 - Section 2.2 - SubSection 2.2.2State/UT-wise No. of Loan Accounts (in lakhs)

Table 2.2 depicts the loan accounts serviced across various States and Union Territories. A year-on-year analysis indicates that 32 States and UTs experienced a decline in the number of loan accounts. In contrast, four North Eastern states—Nagaland (29%), Arunachal Pradesh (17%), Meghalaya (5%), and Assam (1%)—registered an increase, although their overall share in the microfinance industry remains minimal. Notably, the principal states with the highest loan outstanding, including Tamil Nadu (-20%), Karnataka (-12%), Bihar (-9%), Uttar Pradesh (-8%), and West Bengal (-8%), saw a contraction in the number of loan accounts, reflecting broad-based negative growth in these key states.

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India Country

Loan Accounts (in lakhs) of all micro-lenders across States/UTs – March 2025 and March 2024 (in descending order of Loan Accounts)

March 2023 742Lakh Unique Active Borrowers in Total

March 2024 867 Lakh Unique Active Borrowers in Total

2.2.2 State/UT-wise No. of Loan Accounts (in lakhs)

Table 2.2 depicts the loan accounts serviced across various States and Union Territories. A year-on-year analysis indicates that 32 States and UTs experienced a decline in the number of loan accounts. In contrast, four North Eastern states—Nagaland (29%), Arunachal Pradesh (17%), Meghalaya (5%), and Assam (1%)—registered an increase, although their overall share in the microfinance industry remains minimal. Notably, the principal states with the highest loan outstanding, including Tamil Nadu (-20%), Karnataka (-12%), Bihar (-9%), Uttar Pradesh (-8%), and West Bengal (-8%), saw a contraction in the number of loan accounts, reflecting broad-based negative growth in these key states.

Table 2.2 Loan Accounts (in lakhs) of all micro-lenders across States/UTs – March 2025 and March 2024 (in descending order of Loan Accounts)
S. No. State/UT March 2025
(in lakhs)
March 2024
(in lakhs)
Y-o-Y Growth
(in %)
1 Bihar 202.32 221.75 -9%
2 Tamil Nadu 151.63 188.42 -20%
3 Uttar Pradesh 151.16 163.74 -8%
4 Karnataka 126.50 143.91 -12%
5 West Bengal 122.92 132.99 -8%
6 Maharashtra 111.30 124.70 -11%
7 Odisha 83.81 98.05 -15%
8 Madhya Pradesh 81.09 93.46 -13%
9 Rajasthan 56.33 67.83 -17%
10 Andhra Pradesh 50.01 68.65 -27%
11 Jharkhand 42.64 49.15 -13%
12 Gujarat 40.90 46.68 -12%
13 Kerala 40.47 48.83 -17%
14 Telangana 29.55 39.67 -26%
15 Assam 25.89 25.65 1%
16 Chhattisgarh 24.43 28.16 -13%
17 Haryana 18.67 22.98 -19%
18 Punjab 17.44 23.89 -27%
19 Tripura 6.74 7.18 -6%
20 Uttarakhand 6.27 7.30 -14%
21 Puducherry 2.20 2.71 -19%
22 Delhi 2.15 2.67 -20%
23 Goa 0.60 0.67 -12%
24 Himachal Pradesh 0.56 0.64 -12%
25 Meghalaya 0.52 0.50 -5%
26 Others 0.52 0.71 -28%
27 Mizoram 0.43 0.43 -1%
28 Sikkim 0.40 0.42 -6%
29 Manipur 0.38 0.46 -18%
30 Arunachal Pradesh 0.35 0.30 17%
31 Jammu & Kashmir 0.27 0.28 -1%
32 Nagaland 0.21 0.16 29%
33 Chandigarh 0.18 0.21 -16%
34 Andaman and Nicobar Islands 0.05 0.05 -1%
35 Dadra and Nagar Haveli 0.04 0.05 -13%
36 Daman and Diu 0.02 0.03 -11%
37 Lakshadweep 0.00 0.00 -25%
Industry 1,399 1,613 -13%
Table 2.3 No. of Unique Active Borrowers, Loan Accounts, Share of Unique Accounts, and Loan Outstanding vs Active Lender Associations as of March 2025
Active Lender Associations No. of Unique Active Borrowers (in Lakhs) Share of Unique Accounts (in %) No. of Loan Accounts (in Lakhs) Loan Outstanding (in ₹ Cr.)
<=2 731 88.3 1,014 2,78,787
3 59 7.2 199 56,069
4 24 2.9 107 27,742
>=5 13 1.6 79 18,627
Industry 828 1,399 3,81,225

It can be observed from Table 2.3 above that the majority share of the unique active borrowers, industry loan outstanding, and loan accounts is concentrated within the bucket of less than 2 active micro-lenders. The guardrails introduced by the SROs, such as capping the number of micro-lenders at 3 micro-lenders, the total credit exposure of a borrower at ₹2 lakhs, among others, have reduced risk and contributed to more sustainable microfinance operations.