Underlining the importance of microfinance in the country’s economic development and empowerment of women, Department of Financial Services Secretary M. Nagaraju on Thursday called for introspection in the sector, noting that there has been a reduction in the number of loan accounts and outstanding amount during the last year, which is a cause of concern and stress for these institutions. He also highlighted that some institutions charge interest at an uncomfortable rate. Advertisement

Addressing the 20th Sa-Dhan National Conference on Inclusive Growth, he noted that loan accounts had reduced in the last one year by 4.5 crore to 11.45 crore by September 30, 2025, and the total outstanding has reduced to Rs 3.4 lakh crore as on September 2025 from Rs 4.4 lakh crore as of March 2024.

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