Chapter 2 - Section 2.6Borrower Leverage

The Average Ticket Size (ATS) in the microfinance industry during FY 2024-25 reached ₹51,369, reflecting an 11% year-onyear growth from ₹46,225 in the previous financial year. Factors such as borrower overleverage, operational caution, and the pursuit of sustainability in challenging conditions have made the micro-lenders cautious and selective, leading to higher ticket size loans, and hence, there is an upward growth in average ticket size.

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Top 10 States/UTs in terms of Average Ticket size (ATS)

India Country

Average Ticket size (in ₹)- During FY 2024-25 and FY 2023-24

March 2023 742Lakh Unique Active Borrowers in Total

March 2024 867 Lakh Unique Active Borrowers in Total

2.6 Borrower Leverage

2.6.1 Average Ticket Size (ATS)

The Average Ticket Size (ATS) in the microfinance industry during FY 2024-25 reached ₹51,369, reflecting an 11% year-on-year growth from ₹46,225 in the previous financial year. Factors such as borrower over-leverage, operational caution, and the pursuit of sustainability in challenging conditions have made the micro-lenders cautious and selective, leading to higher ticket size loans, and hence, there is an upward growth in average ticket size.

As detailed in Table 2.14, the ATS increased year-on-year in 33 States and Union Territories, with only three minor regions—Jammu & Kashmir, Nagaland, and Lakshadweep— registering declines. Among major states with significant loan outstanding, Karnataka led the increase in ATS, with a 15%, followed by Tamil Nadu (13%), Uttar Pradesh (12%), and both Bihar and West Bengal at 11% each.

Table 2.14: Average Ticket size (in ₹)- During FY 2024-25 and FY 2023-24
S.No. State/UT During FY 2024-25
(in ₹)
During FY 2023-24
(in ₹)
Y-o-Y Growth
(in %)
1 Andaman & Nicobar Islands 72,104 59,185 22%
2 Andhra Pradesh 46,710 43,270 8%
3 Arunachal Pradesh 49,798 39,651 26%
4 Assam 46,659 44,424 5%
5 Bihar 51,558 46,499 11%
6 Chandigarh 52,689 47,568 11%
7 Chhattisgarh 47,628 42,558 12%
8 Dadra and Nagar Haveli 62,992 58,022 9%
9 Daman and Diu 53,249 50,523 5%
10 Delhi 58,895 51,396 15%
11 Goa 51,987 46,786 11%
12 Gujarat 50,649 46,833 8%
13 Haryana 53,288 49,166 8%
14 Himachal Pradesh 49,422 47,759 3%
15 Jammu & Kashmir 42,501 45,337 -6%
16 Jharkhand 46,897 42,998 9%
17 Karnataka 51,678 44,783 15%
18 Kerala 52,765 49,367 7%
19 Lakshadweep N.A. 47,584 N.A.
20 Madhya Pradesh 49,125 43,608 13%
21 Maharashtra 49,091 43,455 13%
22 Manipur 35,965 35,362 2%
23 Meghalaya 48,592 45,143 8%
24 Mizoram 49,652 45,396 9%
25 Nagaland 50,033 56,763 -12%
26 Odisha 46,848 42,732 10%
27 Others 55,121 43,970 25%
28 Puducherry 65,550 56,815 15%
29 Punjab 51,324 44,491 15%
30 Rajasthan 51,451 46,170 11%
31 Sikkim 58,532 53,615 9%
32 Tamil Nadu 60,448 53,279 13%
33 Telangana 47,373 43,874 8%
34 Tripura 57,619 51,879 11%
35 Uttar Pradesh 49,054 43,925 12%
36 Uttarakhand 52,170 47,728 9%
37 West Bengal 54,505 49,058 11%
Industry 51,369 46,225 11%
Figure 2.8: Top 10 States/UTs in terms of Average Ticket size (ATS)

The top 10 States/UTs in terms of Average Ticket Size are given below:

As can be seen from Figure 2.8, the Average Ticket Size (ATS) among the top 10 States and Union Territories, except Tamil Nadu, West Bengal, and Haryana, the other states and UTs are smaller regions, where the presence of MFIs is relatively limited.

In many of these states and Union Territories, such as Nagaland, Sikkim, and Daman & Diu, the majority of loans are disbursed by Banks and Small Finance Banks (SFBs). This lending pattern likely contributes to the higher Average Ticket Size (ATS) observed in these regions.