Chapter 3 - Section 3.4.4Gross Loan Portfolio of MLIs Across States/UTs and Individual MLIs analysis

The table 3.6 presents the Gross Loan Portfolio (GLP) of MLIs across States and Union Territories, along with year-on-year changes. The data shows that 24 States/UTs experienced a decline in their loan portfolio as of March 2025 compared to March 2024.

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3.4.4 Gross Loan Portfolio of MLIs Across States/UTs and Individual MLIs analysis

The table 3.6 presents the Gross Loan Portfolio (GLP) of MLIs across States and Union Territories, along with year-on-year changes. The data shows that 24 States/UTs experienced a decline in their loan portfolio as of March 2025 compared to March 2024.

The contraction in the MLIs portfolio during FY 2024-25 was primarily due to a reduction in capital inflow, limiting their lending capacity. Increased borrower repayment stress led to a rise in delinquencies. Additionally, growing borrower indebtedness from larger loan sizes and multiple loans constrained repayment ability. Regulatory restrictions and weakening of the Joint Liability Group (JLG) model further contributed to cautious lending and portfolio contraction.

Among the top five states by portfolio size, Tamil Nadu recorded the highest decline at (-14.13%), followed by Bihar (-12.95%), Uttar Pradesh (-7.10%), Karnataka (-2.89%), and West Bengal(-1.00%). In contrast, portfolio growth gained momentum in Andhra Pradesh and Telangana, aided by increased lending activity following the Supreme Court’s ruling on the microfinance ordinance applicable to the erstwhile unified Andhra Pradesh. However, this growth was also modest in terms of the quantum of loans.

Table 3.6 Gross Loan Portfolio of MLIs (in ₹Cr.) across States/UTs – March 2025 & March 2024 (in descending order of Gross Loan Portfolio)
State/UT March 2025 March 2024 Y-o-Y Growth (in %)
Karnataka 48,862 50,316 -2.89%
Bihar 30,616 35,170 -12.95%
Tamil Nadu 27,013 31,456 -14.13%
Uttar Pradesh 25,512 27,462 -7.10%
Maharashtra 16,111 16,510 -2.42%
Madhya Pradesh 14,300 16,177 -11.61%
West Bengal 14,217 14,361 -1.00%
Odisha 10,731 14,566 -26.32%
Rajasthan 8,282 10,969 -24.49%
Gujarat 6,954 7,902 -11.99%
Jharkhand 5,604 6,640 -15.61%
Kerala 5,563 6,730 -17.33%
Chhattisgarh 4,789 5,794 -17.34%
Haryana 4,200 4,081 2.91%
Punjab 3,417 3,901 -12.40%
Assam 3,113 2,088 49.07%
Andhra Pradesh 2,825 2,132 32.50%
Telangana 2,311 1,009 129.02%
Uttarakhand 1,209 1,292 -6.43%
Tripura 909 847 7.40%
Puducherry 453 650 -30.29%
Delhi 437 190 130.28%
Himachal Pradesh 198 247 -19.91%
Manipur 113 95 18.95%
Goa 108 137 -21.24%
Arunachal Pradesh 97 124 -21.77%
Jammu & Kashmir 72 138 -47.83%
Sikkim 60 50 18.82%
Meghalaya 44 58 -24.14%
Nagaland 35 67 -47.76%
Mizoram 28 23 21.74%
State/UT March 2025 March 2024 Y-o-Y Growth (in %)
Andaman & Nicobar Islands 8 36 -77.41%
Chandigarh 6 14 -59.79%
Dadra & Nagar Haveli and Daman & Diu - - 0.00%
Ladakh - - 0.00%
Lakshadweep - - 0.00%
Total 2,38,198 2,61,239 -9%

49 Additionally, in terms of reporting 203 MLIs, the number of MLIs that have reported a Y-o-Y degrowth in loan outstanding in terms of legal form and size-wise categories are depicted below in Table 3.7 and Table 3.8:

Table 3.7: Degrowth in MLIs Loan Outstanding according to legal form category
Legal Form Total No. of MLIs No. of MLIs whose loan outstanding declined Y-o-Y % share of MLIs
NBFC-MFIs 90 51 57%
NBFCs 25 7 28%
Pub. & Pvt. Ltd. Coms 18 13 72%
Sec. 8 Coms 24 10 42%
Others 46 15 33%
Total 203 96 47%

According to the legal form category, it can be observed from the above Table 3.7, that the segment with the maximum share of MLIs (in % terms) registering a Y-o-Y degrowth of the loan portfolio is within Pub. And Pvt. Ltd. Coms category (72%), followed by the NBFC-MFIs (57%), and Sec. 8 Coms (42%), respectively.

Table 3.8: Degrowth in MLIs Loan Outstanding according to Size-wise category
Size-wise Total No. of MLIs No. of MLIs whose portfolio declined Y-o-Y % share of MLIs
Small MFIs (GLP ≤ ₹100 Cr.) 117 46 39%
Medium MFIs (GLP between ₹100 Cr.–₹500 Cr.) 41 21 51%
Large MFIs (GLP between ₹500 Cr.–₹2,000 Cr.) 23 14 61%
Very Large MFIs (GLP > ₹2,000 Cr.) 22 15 68%
Total 203 96 47%

According to size-wise category, it can be observed from Table 3.8 that the segment with maximum share of MLIs (in % terms) registering a Y-o-Y degrowth of loan portfolio is within the Very Large MFIs (GLP>₹2,000 Cr.) category with 68%, followed by Large MFIs (GLP between ₹500 Cr.-₹2,000 Cr) with 61%, and Medium MFIs (GLP between ₹100 Cr.- ₹500 Cr.) with 51% respectively.