Chapter 2 Section 2.3.2State/UT-wise Loan Outstanding (in ₹ Cr.)

Bihar retained its position as the largest microfinance market, accounting for 16% of the sector’s loan outstanding.

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2.3.2 State/UT-wise Loan Outstanding (in ₹ Cr.)

Table 2.4 outlines the loan outstanding across States and Union Territories. Year-on-Year analysis reveals that 30 States/UTs experienced a decline in loan outstanding, while only 6 States with relatively smaller microfinance exposure—Arunachal Pradesh (33%), Meghalaya (18%), Mizoram (14%), Nagaland (13%), Punjab (7%), and Assam (5%) registered positive Y-o-Y growth.

Table 2.4 Loan Outstanding (in ₹ Cr.) of all micro-lenders across States/UTs - March 2026 and March 2025 (in descending order of Loan Outstanding)
Sl. No. State/UT March 2026
(in ₹ Cr.)
March 2025
(in ₹ Cr.)
Y-o-Y Growth
(in %)
1 Bihar 53,010 57,206 -7%
2 Tamil Nadu 41,004 45,866 -11%
3 Uttar Pradesh 39,680 41,305 -4%
4 Karnataka 29,429 34,928 -16%
5 West Bengal 28,054 35,950 -22%
6 Maharashtra 24,845 28,390 -12%
7 Madhya Pradesh 19,824 21,444 -8%
8 Odisha 17,387 20,139 -14%
9 Rajasthan 13,799 15,611 -12%
10 Jharkhand 10,911 11,176 -2%
11 Gujarat 9,120 10,661 -14%
12 Keralam 8,824 11,234 -21%
13 Assam 6,874 6,517 5%
14 Chhattisgarh 5,750 6,429 -11%
15 Andhra Pradesh 5,577 5,660 -1%
16 Punjab 5,183 4,846 7%
17 Haryana 4,926 5,285 -7%
18 Telangana 4,325 4,785 -10%
19 Tripura 1,465 2,093 -30%
20 Uttarakhand 1,378 1,692 -19%
21 Puducherry 941 973 -3%
22 Delhi 498 590 -16%
23 Himachal Pradesh 179 184 -2%
24 Meghalaya 165 140 18%
25 Arunachal Pradesh 134 101 33%
26 Mizoram 123 108 14%
27 Goa 99 149 -33%
28 Others 93 142 -35%
29 Jammu & Kashmir 78 93 -16%
30 Sikkim 70 119 -41%
31 Nagaland 67 59 13%
32 Manipur 41 75 -45%
33 Chandigarh 32 34 -5%
34 Andaman & Nicobar Islands 17 17 -3%
35 Dadra and Nagar Haveli and Daman and Diu 5 6 -15%
36 Lakshadweep 0.004 0.010 -59%
37 Ladakh 0.000 0.003 -100%
Sector 3,33,907 3,74,006 -11%
Figure 2.4: Market Share (in %) of micro-lenders in terms of Loan Outstanding (in ₹ Cr.)
Figure 2.4

Bihar retained its position as the largest microfinance market in the country, accounting for 16% of the sector’s loan outstanding, followed by Tamil Nadu and Uttar Pradesh at 12% each. Together, the top 5 states, Bihar, Tamil Nadu, Uttar Pradesh, Karnataka and West Bengal, account for 57% of the sector’s loan outstanding, indicating that microfinance credit exposure remains geographically concentrated within a few key states.

Notably, the principal key states with the highest loan outstanding, including West Bengal (-22%), Karnataka (-16%), Tamil Nadu (-11%), Bihar (-7%), and Uttar Pradesh (-4%), etc., saw a contraction in the loan outstanding, reflecting broad-based negative growth in these key states.

In terms of market share of loan outstanding, NBFC-MFIs remain the dominant provider of microcredit, accounting for 42% of the total market. Banks held the second-largest share with 26%, followed by Small Finance Banks (SFBs) at 15%, NBFCs at 14%, and Others comprising the remaining 3%.