04 Oct 2025 | 5 Mins Read
Motilal Oswal bets on recovery-led growth in microfinance
Flipitmoney
The microfinance industry is recovering, supported by operational reforms and digital underwriting. The gross loan portfolio moderated to ₹3.5 trillion as of June 2025, a 17% year-on-year contraction. Key drivers of the sector's next growth phase include digital underwriting, monitoring of borrower overlaps, and product diversification. Regional variations influence recovery patterns.