About 11 million microfinance borrowers out of the formal credit system
Published on: Nov. 28, 2025, 10:02 p.m. | Source: The Economic Times
Eleven million low-income borrowers have left India's formal credit system. Microfinance lenders reduced lending to those at the economic base. This has caused the microfinance portfolio to fall for six consecutive quarters. Clients are now going out of formal finance. The sector faces a funding squeeze. Despite this, asset quality has improved.
