Microfinance Outlook

This joint report by TransUnion CIBIL and Sa-Dhan explores how microfinance lenders can adapt to the current headwinds and adopt changes in the ecosystem by evolving at a steady pace. Key highlights from this report are:

• Implementation of guardrails has reduced originations by borrowers with multiple lenders and those with outstanding JLG balances ≥ ₹1.5 lakh. Sustained monitoring is critical for the next phase of growth and financial inclusion. 
• Delinquency rates (balances in 90+ DPD) improved from 3.9% in March 2025 to 3.6% in June 2025, signaling recovery. However, deeper delinquency buckets require stronger debt management and execution frameworks. 
• Demand for gold, business, and property loans among MFI borrowers presents significant potential for non-microfinance product cross-selling and portfolio diversification.