The microfinance industry is witnessing a structural shift toward larger ticket sizes. The average loan amount continued its upward trajectory, rising 15.7% year-on-year to Rs 60,200 in Q3 FY26 from Rs 52,000 in Q3 FY25 — underscoring rising demand for higher-value loans and a change in origination strategy, according to a report by CRIF High Mark.
The industry’s gross loan portfolio (GLP) stood at Rs 3.21 lakh crore as of December 2025, down 18% year-on-year. Active loans fell 23% to 11.2 crore during the same period. The decline in disbursements reflects an industry-wide risk recalibration and tighter underwriting norms, the report said. “Active loans are contracting more sharply than the overall portfolio value, indicating consolidation toward higher ticket-size loans and moderated borrower outreach.”
However, disbursements rose sequentially, signalling a recovery in credit flow. Total loans disbursed during Q3 FY26 climbed 9.2% quarter-on-quarter to Rs 61,716 crore.
The Rs 50,000– Rs 80,000 loan segment led originations at 42.8% in Q3 FY26, up from 36.8% a year earlier, while the Rs 80,000–Rs 1 lakh segment rose to 17.9% from 10.8%. Loans above Rs 50,000 now drive value growth across most major states, the report noted.
Portfolio quality also improved, with portfolio at risk (PAR) 31–90 days dropping from 3.1% to 1.4% and PAR 1–180 days falling from 8.2% to 4.4% year-on-year. PAR 180+ (including write-offs) rose from 7.1% to 17.3%, reflecting lenders’ intensified clean-up and write-off efforts.