The average ticket size of microfinance loans in Q1 (April-June) FY26 rose to £ 56,100, an increase of 4.1 percent quarter-on-quarte and 14.9 percent on an annual basis. | Photocredit: Getty images
Lenders seem to follow the “a bird in hand is two in the bush” dictum when it comes to microfinance loans. They are more inclined to provide loans to existing borrowers than new chasing in the aftermath of raised delinquencies in the microfinance segment.
This is confirmed by the fact that the average ticket size of microfinance loans in Q1 (April-June) FY26 rose to £ 56,100, an increase of 4.1 percent quarter-on-quarter (QOQ) and 14.9 percent on annual basis (yoj).
This indicates that lenders (non-banking financing company microfinance institutions, small financial banks, banks and NBFCs) depend on their existing microfinance loans instead of new customer recipients, according to Credit Information Company (CIC) Crif High Mark.
In Q4 (January-March) FY25 and Q1 FY25, the average ticket size of microfinance loans was £ 53,900 crore and £ 48,800 crore.
Refunding strack record
In the past 12 months, about 60 percent of the loans paid by lenders were given to their existing borrowers, Crif High Mark mentioned in his latest micro report.
Sadaf Sayeed, Chief Executive Officer, Muthoot Microfin, said: “I think most MFIs focus on their existing customers with a good repayment record. So in our case also the earlier mix from existing borrowers to new borrowers at 50 percent each to 62 percent and 38 percent, respectively.”
“Because MFIs finance existing customers, their average ticket size is going up. And we have seen that when a customer has a unique relationship with us, the repayment job is much better compared to a customer with multiple relationships with lenders,” said Sayeed.
The gross loan portfolio (GLP) of microfinance providers fell by 17 percent yoj to £ 3.59.200 crore at the end of June 2025, against £ 4.32,700 crore in the midst of lower payout, stricter buying stands and serious liquidity restrictions, per microlend.
Heat waves, wear …
The CIC noted that the microfinance sector remains in a herkalibration phase, which gives risk management and portfolio stabbility priority to aggressive growth in the aftermath of persistent higher ignition levels.
Referring to industrial challenges, noted Satin CreditCare Network LTD (SCNL) in its FY25 year report on that debt housing campaigns, election-related disruptions, extreme heat waves and high field rigoring collections and inflammatory collections and ignition resources.
“Given this background, Bihar, Uttar Pradesh, Tamil Nadu and Odisha accounted for 62 percent of the incremental overdue arrears.
Loan standard
By Crif High Mark’s Assessment the Asset Par (Portfolio at Risk), which is a metric that Measures potential loss in the Loan Portfolio Due to Loan Default, 1–180 (Days Past Due) Improved to 7.06 per cent in March 2024 and 7.90 per cent in December 2024 and 7.90 Down to 2.4 per cent as or June 2025 (from 3.1 per cent in December 2024 and 2.7 per cent in March 2025).
Par, for more than 180 days (including depreciation and for loans that have been paid in the past 36 months), however, in June 2025 rose to 12.4 percent (from 5.3 percent in June 2024), which indicates persistent stress in late delinquences.
The report said that delinquencies in the higher bucket, in particular par more than 180 days, can be increased because some regulated entities can continue to report DPD on accounts that have been written off.
Published on August 14, 2025
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