Thu Jan 23 16:03:22 UTC 2025: ## Karnataka Microfinance Loans Surge to ₹42,265 Crore
**Bengaluru, January 23, 2025** – The total gross loan portfolio for microfinance institutions in Karnataka has experienced a dramatic increase, surging from ₹16,946 crore in March 2019 to ₹42,265 crore by March 2024, according to the Microfinance Industry Network (MFIN). This represents a significant expansion in the sector.
MFIN, a Reserve Bank of India (RBI)-recognized self-regulatory organization, also reported that over 63 lakh unique individuals in Karnataka currently utilize microcredit loans. A joint press conference held by MFIN and the Association of Karnataka Microfinance Institutions (AKMI) highlighted the positive credit discipline shown by borrowers, who have demonstrated a commitment to repayment and responsible borrowing.
Rama Kamaraju of MFIN emphasized the resilience of the sector, noting that even amidst challenges like demonetization and the COVID-19 pandemic, RBI-regulated microfinance operations in Karnataka have remained stable. He specifically praised the “extraordinary resilience and excellent credit discipline” exhibited by women borrowers. The sector’s growth, he added, aligns with various government schemes.
Anand Rao of Chaitanya India Fin Credit pointed out the sector’s long history in Karnataka (over 20 years) and the strong code of conduct followed by RBI-regulated entities. He highlighted the challenge posed by unregulated entities. Venkatesh N. of IIFL Samasta Finance emphasized the crucial role of regulated microfinance institutions in women’s empowerment, fostering entrepreneurship, and creating local employment opportunities.
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