Mumbai, April 10, 2025 – India’s microfinance sector is showing clear signs of recovery with loan growth picking up significantly in the fourth quarter of FY25, according to a recent industry report. The uptick comes after a period of cautious lending and high delinquencies following the pandemic. Improved collection efficiency and increased demand in rural and semi-urban areas have contributed to this positive trend.
Analysts say that the renewed momentum reflects growing borrower confidence and better risk management by microfinance institutions (MFIs). The report suggests that if the current trajectory continues, the sector could witness robust growth in the coming fiscal year, reinforcing its role in promoting financial inclusion.
