# Microfinance overleveraged borrowers drop to 2% of total base 2026-08-17T20:36:53+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet The number of microfinance borrowers with loans from four or more lenders has fallen to 1.35 million, or about 2% of the total borrower base of 66 million, at the end of June, according to data from Crif High Mark. This is less than a third of the peak seen two years ago, although these borrowers still have Rs 14,711 crore in outstanding loans, carrying higher credit risk. The portfolio at risk for these stretched borrowers stood at 7.4-7.9% in the first quarter, compared with 1.9% for those with one or two lenders and 4.1% for those with three lenders. A year earlier, the risk was much higher across all categories. The microfinance market hit a record peak of Rs 4.43 lakh crore in March 2024, when 5.6 million borrowers had loans from more than four lenders. CareEdge Ratings said the sector is recovering after a challenging period, helped by stricter underwriting and policy initiatives that have improved lending discipline. However, smaller micro lenders continue to face tighter liquidity and higher borrowing costs, while larger NBFC-MFIs have better access to funding. Defaulters must clear dues to regain eligibility for fresh loans. ## Coverage - economictimes.indiatimes.com This story was synthesised by AI from the source linked above. Tags: CareEdge Ratings, Crif High Mark, NBFC-MFI Canonical: https://indianopinion.org/microfinance-overleveraged-borrowers-drop-to-2-of-total-base/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/microfinance-overleveraged-borrowers-drop-to-2-of-total-base/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/