Microfinance Disbursal Dips Amid Rising Defaults in Q4FY25

Imagine a lot of small loans are given out to people.

In the last part of the year, fewer of these loans were given out, about 25% less.

This happened because some people couldn't pay back their loans.

Also, the total amount of money lent decreased.

However, the average amount of money given out per loan increased.

This year was tough because of things like heatwaves, external influences and concerns about borrowers borrowing too much.

Even though things got a bit harder, new rules are helping to make sure that people can pay back their loans, so things are starting to improve.