Archive · 24 Nov 2025
MFIs' Disbursement Growth Rebounds After 5 Quarters
After a 5-quarter slowdown, microfinance institutions (MFIs) are disbursing loans again.
The largest MFI, CreditAcess Grameen, saw a 33% increase in loans given out in the second quarter of this year.
Other MFIs also showed improvements.
This is good news for the industry, which had to slow down lending last year due to high numbers of people not paying back their loans and political issues in some states.
Now, MFIs are being more careful about who they lend to and how much they lend.
Microfinance institutions (MFIs) saw meaningful year-on-year (y-o-y) growth in disbursements in Q2FY26
CreditAcess Grameen's disbursements rose 33% y-o-y to ₹5,322 crore in Q2
Satin Creditcare's disbursements were up 6% y-o-y and 17% quarter-on-quarter (q-o-q) to ₹2,421 crore in Q2
MFIs had to slow down disbursements in FY25 due to high non-performing assets (NPAs) and political developments
The industry introduced new guardrails to prevent over-indebtedness and improve asset quality
- Who
- Microfinance institutions (MFIs)
- What
- Showed meaningful year-on-year (y-o-y) growth in disbursements in Q2FY26
- When
- In Q2FY26
- Where
- India
- Why
- Due to improved asset quality and better repayment ability of borrowers
Cautious Growth Advocates
Aggressive Growth Advocates
Growth Rate
Cautious Growth Advocates
A cautious growth rate of around 10% is best for the industry as a whole (HP Singh, SatinCredit Creditcare CMD)
Aggressive Growth Advocates
No mention of specific growth rate targets in the articles
- Largest MFI's Disbursement Growth
- 33% y-o-y in Q2FY26
- Satin Creditcare's Disbursement Growth
- 6% y-o-y and 17% q-o-q in Q2
- MFIs' Disbursement Slowdown Duration
- 5 quarters (FY25)
- New Guardrails Implementation
- In FY25 to improve asset quality and prevent over-indebtedness
