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Microfinance folio fell 17% in Q2
Business Standard
|November 29, 2025
Microfinance lenders had a gross loan portfolio (GLP) of ₹3.39 trillion in the second quarter of the financial year (Q2 FY26), dropping 17 per cent from the previous year, said a report.
The funding squeeze has led to the sixth consecutive quarterly fall in GLP and almost 5 million borrowers exiting formal credit. Microfinance lenders had a GLP of ₹4.08 trillion in Q2 FY25, according to the report by the Microfinance Industry Network (MEIN).
Sequentially, GLP was down almost 4 per cent from ₹3.53 trillion in Q1 FY26.
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