NBFC-MFIs Dominate Microfinance with 41.6% Share; Banks' Share Declines

• NBFC-MFIs hold 41.6% of the microfinance loan portfolio as of December 2025, according to CRIF High Mark's MicroLend report.
• Banks' portfolio share dropped from 32.7% in December 2024 to 26.6% in December 2025, with their disbursement share also falling.
• NBFC-MFIs led originations with a 45.1% share in Q3 FY26, indicating strong market positioning.
• India's microfinance sector shows stabilization, with improving early-stage delinquencies and a shift towards higher ticket-size lending.
• The industry's Gross Loan Portfolio (GLP) was Rs 320.9 lakh crore in December 2025, with average ticket size increasing to Rs 60,200.