<ul><li>The number of microfinance loans disbursed by lenders declined by 41.7% to 1.19 crore in the December quarter, according to a report by credit information company Crif High Mark.</li><li>The total amount disbursed to borrowers from poor and marginalised communities decreased by 34.9% to Rs 63,440 crore, compared to Rs 97,400 crore during the same period last year.</li><li>Loans overdue for 31 to 180 days surged to 6.4% of the portfolio by the end of December 2024, up from 2% a year earlier, the report noted.</li><li>The overall portfolio shrank by 4% year-on-year and 5.4% quarter-on-quarter, settling at Rs 3.91 lakh crore. This decline was attributed to industry adjustments, including stricter regulatory guidelines, risk realignment, and changes in underwriting and collection strategies.</li></ul>

Microfinance Loan Disbursals Drop 41.7% To 1.19 Crore In December Quarter, Says Crif Report

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