According to a report by Microfinance Industry Network (MFIN), Non-Banking Financial Company Microfinance Institutions (NBFC-MFIs) have emerged as the leading contributors to the microfinance sector in India. As of March 31, 2023, NBFC-MFIs extended micro-credit with an outstanding loan portfolio of Rs 1,38,310 crore, constituting 39.7% of the total industry portfolio. Banks follow closely with a 34.2% share and an outstanding amount of Rs 1,19,133 crore. The report highlights the sector’s recovery post-COVID, emphasizing the need for a balanced approach between digital processes and client engagement through physical meetings to maintain collection efficiency. The MFI sector’s estimated market size for 2023-24 is around Rs 13 lakh crore.