Performance Highlights of the Microfinance Sector in India
Author
Ramika Verma, Gargi Chaudhary
Abstract
Microfinance plays a significant role in promoting financial inclusion, poverty alleviation, and entrepreneurship by providing financial services to underserved communities. This study examines the performance of the microfinance sector in India in 2025, focusing on client outreach, outstanding loan portfolios, average loan size, income-generating activities, self-help group (SHG) financing, and annual industry growth. Based on secondary data, the study adopts a descriptive research design to assess the sector's performance and emerging trends. The findings highlight the sector's contribution to financial accessibility and livelihood development while identifying repayment challenges and the need for sustainable growth.
Keywords
Microfinance, Client Outreach, SHG, Performance, India
Full Text:
Download Paper PDF
References
- Armendáriz, B., & Morduch, J. (2010). The economics of microfinance (2nd ed.). The MIT Press.
- Moses, E. (2011). An overview of microfinance in India. International Referred Research Journal, 3(27), 1–4.
- Otero, M. (1999). Bringing development back into microfinance. Journal of Microfinance, 1(1), 8–19.
- (2005). Accelerating growth: Annual report 2005. Oikocredit.
- Sa-Dhan. (2025). The Bharat Microfinance Report 2025. Supported by NABARD. https://www.sa-dhan.net/
- Sarmah, G. N., & Das, D. K. (2012). Micro finance, Self-Help Groups (SHGs) and the socio-economic development of rural people: A case study with special reference to the Lakhimpur District of Assam. Asian Journal of Research in Business Economics and Management, 2(4), 145–159.
Share your valuable work from Social Media Buttons