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News18•08-10-2026, 15:30
Microfinance Sector Projects 15 Percent Credit Growth in FY27
  • •The microfinance sector anticipates a credit growth rate of 15 percent in the current financial year despite RBI rate hikes.
  • •Sa-Dhan chair K Paul Thomas noted that the industry is overcoming challenges with an uptick in credit growth during the last quarter.
  • •A marginal 0.25 percent RBI rate hike will likely be absorbed by the industry without immediately impacting loan demand.
  • •The industry asset base reached Rs 3.5 lakh crore by the end of September 2026, with average loan ticket sizes increasing.
  • •NABARD Chairman Shaji K V emphasized leveraging technology and agristack to reduce underwriting costs and boost rural financing.
Read Full Article on News18 in English

Key Questions Answered

The microfinance sector expects to witness a credit growth rate of 15 per cent during the 2026-27 financial year, driven by a recent uptick in demand and a busy second half of the fiscal year.

A 0.25 per cent rate hike by the Reserve Bank of India will not cause an immediate increase in lending rates because the industry is not very interest rate sensitive and will try to absorb the marginal hike.

NABARD builds technology infrastructure for cooperative banks to enhance customer service, supports microfinance institutions through capacity building, leverages agristack technology, and focuses on enabling entrepreneurship among youth.

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