MFIs top India's loan market with 43% of ₹3.3L/cr portfolio
Business
Microfinance institutions (MFIs) have become the top players in India's loan market, now holding 43% of a massive ₹3.3 lakh crore portfolio as of June 2026.
That's a noticeable jump from their earlier 36% to 38%, showing how quickly MFIs are gaining ground.
India's active borrowers fall to 6.5cr
While NBFCs have quietly grown their share to 15% (up from 10% in four years), banks have slipped to just 27%, down from 35% two years ago.
Small Finance Banks are steady at about 16%.
Meanwhile, the number of active borrowers peaked at 8.6 crore but dropped to 6.5 crore, with more lending activity now moving south, from states like Bihar and Uttar Pradesh toward Tamil Nadu over the past seven years.