North India Statesman
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Mumbai: Microfinance distribution in the country has declined by 38 per cent during the fourth quarter of FY 2025 i.e. January to March 2025.
However, seasonal factors compared to the third quarter led to an increase of 12.2 percent in microfinance disbursement, ie borrowings. According to a report by the Credit Bureau CRIF, microfinance distribution in the fourth quarter of FY 2024-25 rose 12.2 per cent to Rs 71,580 crore against the third quarter, but on an annual basis, it has dropped by 38 per cent against the same period of last year.
As a result, the total loan portfolio also declined by 14 percent year-on-year and 2.6 percent to Rs 1,25,000 crore as compared to the third quarter. 3.81 lakh crores Which was 1000 rupees. At the end of March 2024, Rs 4.42 lakh crore and Rs. By the end of December 2024, it will be Rs 3.91 lakh crore.
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In addition, with a decline in new debt origin, active loans have also come down from Rs 16.10 crore in March 2024 to Rs 14 crore in the end of March 2025. The total number of active customers during this period also decreased from 87 million to 83 million.
This decline indicates that microfinance lenders have become cautious in lending due to debt stress conditions. Along with this, a cautious attitude is also being seen regarding regulatory measures. There has been a significant decline in the departments of Tamil Nadu and Karnataka in state -wise data.
