India's borrowers with 4+ lenders fall to 1.35 million as of end-June 2026
Good news for India's microfinance world: the number of borrowers juggling loans from more than four lenders has dropped sharply, with about 5.6 million borrowers having loans from more than four lenders at the end of March 2024 to just 1.35 million as of end-June 2026 (only 2% of all borrowers).
Even though these folks still owe ₹14,711 crore, stricter lending rules seem to be working and helping keep things in check.
India's overleveraged borrowers face 7.5% delinquencies
Loans at risk (those overdue by more than 30 days and up to 180 days) are much higher for overleveraged borrowers, around 7.5%, compared to just 1.9% for borrowers associated with one or two lenders, and 4.1% for borrowers taking loans from three lenders.
The total market hit a record ₹4.43 lakh crore in March 2024, but tighter rules also meant about 21 million people exited the system in two years.
Larger microfinance institutions are handling these changes better than smaller ones, who still struggle with funding and liquidity despite the uneven pace of recovery.