Microfinance Loan Defaults Surge in 2024–25: Sa-Dhan’s Bharat Microfinance Report
Microfinance loan defaults in India have risen sharply in FY 2024–25, according to Sa-Dhan’s Bharat Microfinance Report 2025.
- Sa-Dhan, India’s self-regulatory body for microfinance institutions (MFIs), publishes the annual Bharat Microfinance Report tracking sectoral credit performance and financial inclusion outcomes.
- The proportion of microfinance loans overdue by more than 30 days (PAR 30+) rose to 6.2% in FY25, up from 2.1% in FY24.
- Loans overdue by more than 90 days—considered NPAs—jumped to 4.8%, from 1.6% the previous year.
- Bihar led with ₹57,712 crore in outstanding microfinance loans; 7.2% were delayed over 30 days, and 4.6% were delayed beyond 90 days.
- Of the ₹2.3 lakh crore loans to rural borrowers, 6.4% were overdue beyond 30 days—higher than urban (6%) and semi-urban (6.1%) borrowers, reflecting deepening rural repayment stress.
