Chapter 3 - Section 3.3.3State-wise MLIs Client Outreach

Table 3.3 presents the State/UT-wise MLIs’ client base, indicating that nearly all States/ UTs witnessed a negative growth during the year, with the exception of a few regions that traditionally hold a smaller share of the microfinance portfolio. These include the Andaman & Nicobar Islands, Mizoram, Sikkim, Assam, Telangana, and Andhra Pradesh. Among the larger portfolio states, sharper declines were recorded in Rajasthan (-23%), Odisha (-20%), Jharkhand (-18%), Kerala (-17%), Tamil Nadu (-15%), West Bengal (-14%), Bihar (-12%), Madhya Pradesh (-11%), and Uttar Pradesh (-9%). In contrast, Andhra Pradesh and Telangana reported a notable expansion in client outreach, driven by the entry of multiple MLIs into these markets following a favourable court ruling.

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India Country

Client base (in lakhs) of MLIs across States/UTs–March 2025 & March 2024 (in descending order of client outreach)

March 2023 742 Lakh Unique Active Borrowers in Total
March 2024 867 Lakh Unique Active Borrowers in Total

Geographic and Institutional Expansion of Microfinance in India

3.3.3 State-wise MLIs Client Outreach

Table 3.3 presents the State/UT-wise MLIs’ client base, indicating that nearly all States/ UTs witnessed a negative growth during the year, with the exception of a few regions that traditionally hold a smaller share of the microfinance portfolio. These include the Andaman & Nicobar Islands, Mizoram, Sikkim, Assam, Telangana, and Andhra Pradesh. Among the larger portfolio states, sharper declines were recorded in Rajasthan (-23%), Odisha (-20%), Jharkhand (-18%), Kerala (-17%), Tamil Nadu (-15%), West Bengal (-14%), Bihar (-12%), Madhya Pradesh (-11%), and Uttar Pradesh (-9%). In contrast, Andhra Pradesh and Telangana reported a notable expansion in client outreach, driven by the entry of multiple MLIs into these markets following a favourable court ruling.

The decline in MLIs client base in FY 2024- 25 was mainly due to increased borrower rejection rates amid rising asset quality stress and indebtedness. A significant reduction in capital inflow further constrained new loan disbursements. Additionally, guardrails issued by the SROs limited multiple lending and reduced borrower overlap across MLIs, which contributed to the contraction in the active client base.

Table 3.3: Client base (in lakhs) of MLIs across States/UTs–March 2025 & March 2024 (in descending order of client outreach)
State/UT March 2025 March 2024 Y-o-Y Growth (in %)
Karnataka 88.90 90.25 -1.50%
Bihar 87.20 99.61 -12.45%
Uttar Pradesh 76.17 84.03 -9.35%
Tamil Nadu 71.34 83.76 -14.83%
Madhya Pradesh 42.00 47.36 -11.32%
Maharashtra 39.97 40.94 -2.38%
West Bengal 37.05 43.30 -14.43%
Odisha 34.96 43.66 -19.93%
Rajasthan 25.20 32.63 -22.76%
Gujarat 20.50 21.99 -6.78%
Jharkhand 17.00 20.81 -18.31%
Kerala 15.57 18.67 -16.61%
Chhattisgarh 13.48 17.01 -20.76%
Haryana 12.59 12.89 -2.32%
Punjab 10.39 12.99 -20.02%
Assam 9.02 7.02 28.48%
Andhra Pradesh 8.24 5.67 45.34%
Telangana 6.51 2.79 133.24%
Uttarakhand 3.92 4.21 -6.86%
Tripura 2.69 2.79 -3.73%
Puducherry 1.33 1.84 -27.80%
Himachal Pradesh 0.50 0.67 -24.75%
Delhi 0.45 0.49 -7.72%
Manipur 0.38 0.41 -6.48%
Goa 0.32 0.35 -8.29%
Arunachal Pradesh 0.23 0.38 -39.07%
Jammu & Kashmir 0.22 0.42 -46.72%
Sikkim 0.16 0.14 14.76%
Meghalaya 0.11 0.17 -34.92%
Mizoram 0.09 0.07 33.43%
Nagaland 0.09 0.2 -53.69%
Andaman & Nicobar Islands 0.05 0.02 141.10%
Chandigarh 0.02 0.05 -57.72%
Dadra & Nagar Haveli and Daman & Diu 0 0 0.00%
Ladakh 0 0 0.00%
Lakshadweep 0 0 0.00%
Total 627 698 -10%