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Microfinance Portfolio Dips 12% YoY, Disbursements Surge 17% in Q1: SIDBI-Equifax Report
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CNBC TV18•24-09-2026, 15:29
Microfinance Portfolio Dips 12% YoY, Disbursements Surge 17% in Q1: SIDBI-Equifax Report
- •India's microfinance industry saw its outstanding portfolio decline by 12% year-on-year to ’2.69 lakh crore as of June 2026, while disbursements rose 17% to ’62,302 crore in Q1.
- •The average loan size increased to ’62,962, with loans above ’75,000 accounting for 41% of disbursements, indicating a shift towards larger loan sizes.
- •Repayment performance improved significantly, with loans overdue by 30 days or more falling to 1.89% in June 2026 from 6.08% in June 2025.
- •Non-bank microfinance lenders (NBFC-MFIs) held 47% of the outstanding portfolio and nearly 44% of total disbursements, while banks experienced a 37% decline in their microfinance portfolios.
- •Bihar leads state-level portfolios at 17%, followed by Uttar Pradesh and Tamil Nadu at 12% each; delinquency rates declined across the top 10 states, with Odisha recording the lowest at 1.25%.
Key Questions Answered
According to the SIDBI-Equifax report, India's microfinance industry outstanding portfolio stood at ₹2.69 lakh crore as of June 2026, marking a 12% year-on-year decline. Meanwhile, loan disbursements during the April-June quarter rose 17% to reach ₹62,302 crore.
Repayment performance saw an improvement as the share of loans overdue by 30 days or more fell significantly to 1.89% in June 2026, down from 6.08% in June 2025. Furthermore, delinquency rates declined across all of the top ten states year-on-year.
Bihar accounted for the largest share of the industry's microfinance portfolio at 17%, followed closely by Uttar Pradesh and Tamil Nadu with 12% each.
