Reports and Indices

Microfinance Loan Defaults in 2024–25

October 14 , 2025 14 hrs 0 min 17 0

Sa-Dhan, a self-regulatory organization for microfinance institutions (MFIs) publishes the annual Bharat Microfinance Report.
The report for FY 2024–25 shows a sharp rise in microfinance loan defaults across the country.
Portfolio at Risk over 30 days (PAR 30+) increased to 6.2% in FY 2024–25, compared to 2.1% in FY 2023–24.
Loans overdue by over 90 days—classified as Non-Performing Assets (NPAs)—rose to 4.8%, from 1.6% last year.
Bihar had the highest microfinance loan outstanding at ₹57,712 crore.
In Bihar, 7.2% of loans were overdue beyond 30 days, and 4.6% were overdue beyond 90 days.
Rural borrowers took loans worth ₹2.3 lakh crore, with 6.4% overdue beyond 30 days.
The overdue rate was lower in semi-urban (6.1%) and urban (6%) areas, showing greater stress in rural repayments.
The data reflects increased credit risk and repayment pressure in the microfinance sector, especially in rural India.