Microfinance lenders saw stabilization in the March 2026 quarter. The industry's portfolio shrank year-on-year but grew sequentially. Lending shifted to existing borrowers. Borrower leverage moderated across key states. Loan sizes increased. Asset quality showed mixed trends with improved 30+ days past due rates but intensified stress in older loan cohorts.
Microfinance lenders saw stabilization in the March 2026 quarter. The industry's portfolio shrank year-on-year but grew sequentially. Lending shifted to existing borrowers. Borrower leverage moderated across key states. Loan sizes increased. Asset quality showed mixed trends with improved 30+ days past due rates but intensified stress in older loan cohorts.
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