Microfinance loan disbursements above ₹1 lakh jump 89.8%; smaller loans decline
Microfinance lenders increased disbursements of loans above ₹1 lakh by 89.8% in the June quarter, reflecting a shift towards larger loans amid improving asset quality. Smaller loans under ₹30,000 saw a 35% decline, indicating a preference for bigger, safer exposures, with over 77% of higher-value loans going to existing borrowers. Overall disbursements rose 18.6% year-on-year to ₹61,100 crore, though they fell nearly 20% quarter-on-quarter due to seasonal factors.