Default clouds hover over microfinance as industry flags weak monsoon

The Microfinance Industry Network (MFIN) flagged risks of a below-average monsoon and West Asia conflict impacting rural livelihoods, while reporting a strong sectoral revival. Q4 FY25 loan disbursements hit ₹77,524 crore, the highest in eight quarters, and asset quality improved with the 31-180 day overdue portfolio falling to 2% from 6.3% a year ago. The government extended the ₹20,000-crore credit guarantee scheme deadline to August 31, 2026, to improve bank fund flow to NBFC-MFIs.