Microfinance Assets Recover After Seven Quarters of Decline

Microfinance institutions lend small amounts of money to borrowers.

Their total loans outstanding grew in the fourth quarter of FY26 after falling for seven quarters.

The industry also gave out more loans than it had in the previous eight quarters.

Fewer borrowers were late in repaying their loans.

New rules limited how many lenders could lend to one borrower and capped total microfinance borrowing.

These rules appear to have helped improve loan collections.

Non-bank microfinance institutions grew faster than the overall industry.

Larger institutions may grow more quickly because smaller ones have more difficulty raising money.