Chapter 2 Section 2.3.3State/UT-wise Loan Outstanding per Unique Active Borrower (in ₹)

Loan outstanding per unique active borrower stood at ₹49,658 as of March 2026, a modest year-on-year growth of 3%.

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2.3.3 State/UT-wise Loan Outstanding per Unique Active Borrower (in ₹)

Table 2.5 provides data on loan outstanding per unique active borrower across States and Union Territories, showing modest year-on-year growth of 3%. This marginal increase is mainly attributable to a more cautious and risk-limiting stance adopted by micro-lenders in response to rising delinquencies and increased borrower leverage. Additional contributing factors include limiting measures imposed by the SROs, such as restrictions on the number of micro-lenders and caps on combined microfinance and retail loan exposure for households, which is not to exceed ₹2 lakhs.

Table 2.5 Loan Outstanding per Unique Active Borrower across States/UTs (in ₹) - March 2026 and March 2025 (in descending order of Loan Outstanding per Unique Active Borrower)
Sl. No. State/UT March 2026
(in ₹)
March 2025
(in ₹)
Y-o-Y Growth
(in %)
1 Bihar 59,070 50,049 18%
2 Arunachal Pradesh 58,161 42,010 38%
3 Karnataka 55,483 54,686 1%
4 Jharkhand 53,969 46,609 16%
5 Puducherry 52,983 52,722 0.5%
6 Tamil Nadu 51,537 59,191 -13%
7 Himachal Pradesh 50,680 44,882 13%
8 Keralam 50,591 52,543 -4%
9 Uttar Pradesh 50,225 44,408 13%
10 Maharashtra 49,119 46,260 6%
11 Odisha 49,117 48,300 2%
12 Haryana 48,792 46,063 6%
13 Punjab 48,329 44,303 9%
14 West Bengal 47,752 48,479 -1%
15 Rajasthan 47,273 46,661 1%
16 Andaman & Nicobar Islands 46,517 41,096 13%
17 Madhya Pradesh 46,338 45,067 3%
18 Chhattisgarh 46,005 45,639 1%
19 Uttarakhand 45,025 44,380 1%
20 Goa 44,591 42,777 4%
21 Dadra and Nagar Haveli and Daman and Diu 44,042 36,710 20%
22 Tripura 43,617 49,396 -12%
23 Jammu & Kashmir 43,276 45,440 -5%
24 Gujarat 42,844 42,192 2%
25 Mizoram 40,527 28,509 42%
26 Delhi 39,984 39,747 1%
27 Nagaland 39,358 37,466 5%
28 Meghalaya 38,967 32,112 21%
29 Assam 38,682 39,834 -3%
30 Chandigarh 38,427 37,020 4%
31 Sikkim 33,939 39,311 -14%
32 Telangana 33,900 37,690 -10%
33 Andhra Pradesh 30,492 30,588 -0.3%
34 Lakshadweep 19,967 19,344 3%
35 Manipur 18,877 24,936 -24%
36 Others 6,611 28,766 -77%
37 Ladakh N.A. 6,332 N.A.
Sector 49,658 48,171 3%

On a Y-o-Y comparison, 10 States/UTs recorded a decline in loan outstanding per borrower, while 25 States/UTs registered positive growth in loan outstanding per borrower. The principal key states with substantial loan outstanding, such as Bihar (18%), Uttar Pradesh (13%), Maharashtra (6%), Madhya Pradesh (3%), Odisha (2%), Karnataka (1%), Rajasthan (1%), etc., registered growth in loan outstanding per borrower, while Tamil Nadu (-13%) and West Bengal (-1%) registered a decline in loan outstanding per borrower.

Figure 2.5: Percentage of Rural, Urban and Semi-Urban Share of Micro-Lenders Loan Outstanding
Figure 2.5

As illustrated in Figure 2.5, the loan outstanding geographical composition continues to exhibit a pronounced rural orientation. During FY 2025-26, the rural segment accounted for 80% of the aggregate loan outstanding, with the urban and semi-urban segments contributing 18% and 2%, respectively. This distribution is broadly consistent with the pattern observed in FY 2024-25, when the rural segment constituted 79% of the aggregate loan outstanding, while the urban and semi-urban segments accounted for 19% and 2%, respectively — reflecting a marginal but noteworthy 1 percentage-point shift toward rural concentration year-on-year. This sustained and deepening skew toward rural geographies across both financial years reaffirms that microfinance, in its essential nature, remains fundamentally a rural phenomenon, being oriented toward addressing the credit needs of underserved and financially excluded rural populations who typically fall outside the ambit of conventional banking channels.

Figure 2.6: Regional distribution of Loan Outstanding (in %)
Figure 2.6

In terms of regional distribution of loan outstanding, the Eastern region—comprising Bihar, Odisha, Jharkhand, West Bengal, and Andaman & Nicobar Islands—led with a 33% market share. This was followed by the Southern region, which includes Andhra Pradesh, Karnataka, Keralam, Tamil Nadu, Telangana, Puducherry, and Lakshadweep, accounting for 27%. The Central region, consisting of Madhya Pradesh, Uttar Pradesh, Chhattisgarh, and Uttarakhand, held 20% of the market share. The Western region, covering Gujarat, Maharashtra, Goa, and Dadra and Nagar Haveli and Daman and Diu, contributed 10%, while the Northern region—encompassing Delhi, Haryana, Rajasthan, Punjab, Chandigarh, Himachal Pradesh, Jammu & Kashmir, and Ladakh—accounted for 7%. The Northeastern states, including Assam, Manipur, Tripura, Nagaland, Sikkim, Meghalaya, Mizoram, and Arunachal Pradesh, have the smallest share at 3%.