India's microfinance loan disbursements rise after nearly 2 years
After nearly two years, India's microfinance industry is finally seeing growth again.
Loan disbursements are up for the first time in nearly two years, thanks to better loan quality and government credit guarantee schemes.
Alok Misra, CEO and Director of Microfinance Industry Network (MFIN), says this marks a real turnaround for the sector.
India's microfinance faces monsoon, funding challenges
The recovery isn't without challenges. A weak monsoon could hurt rural incomes, making it harder for people to repay loans or borrow more.
While bigger microfinance firms are finding it easier to get funding, smaller ones still face roadblocks.
Misra hopes things will improve as banks use the government's extended credit guarantee program (now available until August 2026).
He also suggests lenders should go slow with credit in areas hit by bad weather, so growth stays steady and responsible.