4th April 2025: CRIF Highmark a leading credit bureau released the thirtieth edition of ‘CRIF MicroLend Vol XXX – Dec 2024’. MicroLend is a quarterly publication from CRIF High Mark on Microfinance lending in India. The publication presents trends & analysis of key parameters such as Gross Loan Portfolio, Growth, Market Share, Borrower Leverage, Compliance and Portfolio Risks. The report also slices the data for major states and Urban/Rural geographies. Semi-urban portfolio is reported as part of urban split in the report.
Key Insights from the Report:
- As of Dec’24, the microfinance portfolio stood at ₹391.5K crore, marking a YoY decline of 4.0% compared to Dec’23 and a QoQ decrease of 5.4% since September 2024
- Originations faced additional pressure in Q3 FY25, with significant contractions of 34.9% YoY in value and 41.7% YoY in volume compared to Q3 FY24
- Active loans dropped from 15.7 Cr in Dec’23 to 14.6 Cr in Dec’24, indicating a decline in supply
- The live customer base showed a slight YoY increase initially but declined from 8.7 Cr in Mar’24 to 8.4 Cr in Dec’24, marking a reduction in the active customers
- NBFC MFIs and banks continued to dominate the market, collectively holding a 71.3% share
- While loans with a ticket size of ₹30k–₹50k remain the largest category in the portfolio, their share declined from 47.8% in Dec’23 to 43.3% in Dec’ 24
- Bihar leads the GLP, followed by TN and UP with the three states collectively accounting for 38% of the national total. Most states saw a YoY decline in GLP, with Kerala recording the sharpest drop at -15.8% YoY, as many players strategically reduced their portfolio exposure to microfinance loans in the region
- SFBs have seen notable declines, recording a YoY drop of -10.8% and a QoQ reduction of -8.9%
- While other ticket sizes saw a QoQ decline, the ₹1L+ segment continued to exhibit steady growth. YoY, originations for loans above ₹1L increased, whereas those under ₹1L decline