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India's Microfinance Saga: Debt Rises a Bit, We're Still Here!

India's Microfinance Saga: Debt Rises a Bit, We're Still Here!

Hey, listen up! India's microfinance saga is still going strong, believe it! Borrower debt has seen a tiny bump after two years of dips, but the sector is hanging in there! Credit took a hit for the sixth time, down 9.3 percent, but we're not giving up! With tighter rules in place, we're ready to tackle the challenges ahead, just like a ninja on a mission!

Quick rundown

  1. Borrower indebtedness in microfinance rose slightly in September 2025.
  2. Credit to the microfinance sector declined for the sixth consecutive quarter.
  3. NBFC-MFI credit costs soared due to increased risk provisions.
  4. MFIN reported a 17% drop in the microfinance loan portfolio in Q2 FY26.
  5. SROs imposed stricter norms to curb stress in microfinance lending.

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