News: Sa-Dhan’s Bharat Microfinance Report 2025, highlights rising delinquencies in FY2024–25 and a temporary slowdown.
About Sa-Dhan Bharat Microfinance Report 2025
- Prepared by: The Bharat Microfinance Report 2025 has been prepared by Sa-Dhan, in partnership with NABARD, using data from over 200 micro-lending institutions that cover 98% of industry operations.
- It brings together information from credit information companies and industry sources to present a clear picture of client outreach, portfolio size, regional trends, and the role of different institution types..
- Key findings
- Delinquencies increased:
- The share of loans overdue by more than 30 days (PAR 30+) rose to 6.2 percent from 2.1 percent in 2023–24.
- Rising NPA: The share overdue by more than 90 days rose to 4.8 percent from 1.6 percent.
- Bihar showing 7.2 percent loans overdue by more than 30 days and 4.6 percent loans overdue by more than 90 days.
- Rural stress: Rural borrowers show the highest stress: 6.4% overdue (30+ dpd) versus 6.1% in semi-urban and 6.0% in urban areas.
- Top microfinance states: Bihar, Tamil Nadu, Uttar Pradesh, West Bengal, Karnataka.
- Support livelihoods : 91% of loans were used for income generation.
- Inclusion: The Self-Help Group Bank Linkage programme also expanded, with total outstanding loans reaching ₹3.04 lakh crore across 84.9 lakh SHGs, connecting 17.1 crore households to formal credit.
- Industry structure: NBFC-MFIs and NBFCs serve 86% of clients and hold 84% of the portfolio.
- Slowdown: Loan accounts fell 13% to 13.99 crore; loan outstanding fell 14% to ₹3,81,225 crore; FY25 disbursements dipped 26% to ₹2,84,130 crore.
- Reasons for slowdown: The fall in disbursement and portfolio growth was driven by a liquidity crunch, deteriorating asset quality, tighter regulatory measures, and a cautious lending approach after rapid expansion and rising defaults.
- Delinquencies increased:
About Sa-Dhan
- Sa-Dhan is an association of Impact Finance Institutions and an RBI appointed Self-Regulatory Organization (SRO) for Microfinance Institutions.
- It is the first and largest association of community development finance institutions in India formed over two decades ago for supporting and strengthening the agenda of fostering Inclusive Impact Finance in India.
- It strives for creating a better understanding of the microfinance sector among policymakers, funders, banks, governments, researchers, and practitioners.
- It is also recognized as a National Support Organization (NSO) by National Rural Livelihood Mission (NRLM).
