RBI says microfinance credit grows after seven quarters, borrower base continues to shrink
Microfinance loans saw their first increase in over a year during the January-March 2026 quarter, despite a continued drop in borrower numbers. The Reserve Bank of India's report highlights improving asset quality and reduced borrower leverage. NBFCs remain crucial for MSME financing, with their credit to the microfinance sector showing robust expansion, signaling a sector in consolidation but with positive underlying trends.
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