Finance
EnglishMicrofinance Sector Recovers: Good News for Borrowers
India's microfinance sector is on the mend! After a rough patch, it grew by 3% in early 2026, shaking off a year of decline. Delinquency rates are down, and lenders are getting smarter with their loans. Bihar remains the top player, while Tamil Nadu is the champion of happy borrowers. Looks like this sector is turning things around!
few days ago | BS Reporter
Quick rundown
1.India's microfinance sector shows signs of recovery.
2.Portfolio grew 3% in Q1 2026, reversing declines.
3.Delinquency rates improved significantly across the board.
4.NBFC-MFIs lead with half of active loans and disbursements.
5.Focus shifts to higher-value loans and creditworthy borrowers.
