India's microfinance sector is increasingly doing more with less. While the number of active loans has fallen 22.4% year-on-year
India's microfinance sector is increasingly doing more with less. While the number of active loans has fallen 22.4% year-on-year, the average exposure per loan has risen 22.7%, indicating a clear move towards larger ticket sizes and more mature borrower profiles. At the same time, portfolio quality has remained steady, underscoring a shift from rapid expansion to calibrated growth. The microfinance sector today resembles a retailer focusing on fewer but higher-value customers. Active loans have reduced, but average loan exposure has climbed sharply, allowing the industry to preserve portfolio strength while maintaining stable repayment performance. Captured below are the key observations from the report: India's microfinance Gross Loan Portfolio (GLP) stood at ₹328.4 thousand crore as of September 2026, registering a decline of 5.0% YoY and 1.4% QoQ. The portfolio comprised 9.6 crore active loans, serving a live customer base of 6.4 crore borrowers. Average exposure per lo...