Finance
Sock JohnsonMicrofinance Showdown: Borrower Debt Bumps Up in September 2025
Ladies and gentlemen, the microfinance showdown is here! In September 2025, India's microfinance scene is feeling the heat, with borrower debts inching up after two years of a downward spiral. Stress is still hanging around, but it's not throwing any punches just yet! With credit down for six quarters and nearly 5 million borrowers bouncing out, the stakes are high, but the spirit? Unbreakable, baby!
few days ago | Aathira Varier
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.
