Mumbai, April 28 (IANS). Micro-Finance Sector (MFI) in India is estimated to increase by 12 to 15 percent in FY 2026. With this, it will return to the level of FY 2024. This information was given in a report on Monday.
MP Financial Advisory Services LLP (MPFASL) said in its report that in a more favorable environment, especially due to normal monsoon, the development of rural income can be a little better.
The MFI sector has consistently demonstrated strength, which has recovered from previous disruptions such as demonetisation and Kovid-19 epidemic.
India’s Micro-Finance sector has become the basis of financial inclusion, which makes access to loans for the disadvantaged population, especially women, small farmers and micro entrepreneurs in rural and semi-urban areas.
With a strong CAGR of 28 percent from FY14 to FY 2024, this sector now serves more than 7.9 crore specific borrowers in 92 percent districts of the country.
The report stated that the approach to FY 2026 remains cautiously optimistic.
Mahendra Patil, founder and managing partner of MP Financial Advisory Services LLP, said, “Micro-Finance Sector is at an important point, which is balanced with sustainable growth with responsible credit.
Development can be temporarily slow due to increasing competition. However, reforms are likely to increase debt discipline, portfolio quality and long -term field strength.
However, the main challenge must ensure that such structural reforms do not weaken the target of financial inclusion.
As of March 2024, about 37 percent of India’s rural population is under the MFI industry.
Patil said, “A balance approach, including policy support, innovative credit assessment and strategic partnership, will be necessary to maintain access to the foundation of the region.”
In addition, the emergence of Fintech and non-NBFC-MFIs offering a wide range of debt options has made access to the fund easier, which has helped in giving many types of loans.
-IANS
SKT/ABM
