Archive · 15 Aug 2025
Microfinance Lenders Prioritize Existing Borrowers
Microfinance companies are focusing on lending to people who already have loans with them because it's considered a safer bet.
This means the loans are getting bigger.
They are dealing with issues like late payments.
Problems such as debt relief programs, elections, and heatwaves are making it harder to collect money and grow.
Microfinance lenders are prioritizing loans to existing borrowers.
Average microfinance loan ticket size increased to ₹56,100 in Q1 FY26.
About 60% of loans disbursed in the last 12 months were to existing borrowers.
Gross loan portfolio of microfinance lenders declined 17% year-on-year.
Debt-waiver campaigns, election disruptions, and heatwaves impacted collections.
- Who
- Microfinance lenders, CRIF High Mark, and Sadaf Sayeed
- What
- Microfinance lenders are prioritizing existing borrowers due to elevated delinquencies.
- When
- Q1 FY26 (April-June), June-end 2025, and last 12 months
- Where
- India
- Why
- Elevated delinquencies and industry-wide challenges are causing lenders to prioritize existing borrowers.
Industry Challenges
N/A
Impact on Collections
Industry Challenges
Debt-waiver campaigns, elections, and heatwaves affected collections.
N/A
N/A
- Average Ticket Size (Q1 FY26)
- ₹56,100
- YOY GLP decline
- 17%
- Loans to existing borrowers
- 60% (last 12 months)
- PAR 1-180 (June 2025)
- 7.06%
- PAR over 180 days (June 2025)
- 12.4%
