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Microfinance Industry Network (MFIN) Releases 54th Micrometer Report: MFIs’ Disbursements Drop 24% YoY to ₹22,805 Crore in Q1 FY26.

Banking & Finance | Dated: 09 Sep 2025

In September 2025, the Microfinance Industry Network (MFIN), the umbrella body for Microfinance Institutions (MFIs), released the 54th edition of its quarterly report Micrometer as of 30 June 2025. The report highlighted a significant decline in disbursements and client base across the sector, reflecting stress in microfinance lending.

🎯 Key Highlights:

  • - The 54th edition of Micrometer revealed that the Assets Under Management (AUM) of MFIs stood at ₹1,34,574 crore as of 30 June 2025, including owned portfolio worth ₹1,11,849 crore and managed portfolio worth ₹22,725 crore. However, this reflected a 16.4% decline compared to 30 June 2024, and a 5.4% decline compared to 31 March 2025.
  • - The client base of MFIs also contracted from 4.5 crore to 3.8 crore accounts during the same period, showing weakening outreach of microfinance operations. This contraction aligns with the funding and disbursement slowdown noted in the sector.
  • - In Q1 FY26, MFIs disbursed loans worth ₹22,805 crore, which represents a 24% year-on-year decline compared to the same quarter of FY25. The disbursement was spread through 41.5 lakh loan accounts, highlighting reduced lending momentum across the microfinance sector.

💡 Other Important Facts:

  • (i) On the funding side, MFIs received a total of ₹12,781 crore in debt funding during Q1 FY26, a 23.6% decline compared to the corresponding quarter in FY25.
  • (ii) The report further noted that the average loan amount disbursed per account in Q1 FY26 was ₹54,956, representing an increase of 16.5% compared to the same quarter of FY25. While the overall disbursement volume fell, the rise in ticket size indicates lenders are offering larger loans per borrower despite reduced outreach.
  • (iii) The release of the 54th Micrometer report underscores challenges for the microfinance sector, with shrinking AUM, lower disbursements, and a falling client base, but with a trend towards higher per-loan disbursement values.

📚 Test Your Knowledge:

Recently, according to the 54th Micrometer report released by MFIN, how much loan amount did MFIs disburse in Q1 FY26?

Correct Answer: ₹22,805 crore

🚀 Quick Recap:

About Microfinance Industry Network (MFIN) India

  • CEO and Director : Dr. Alok Misra
  • Headquarters : Gurugram, Haryana