Top 10 Microfinance Companies in India 2025 – Microfinance has emerged as an important instrument for the poor sections of society in India who do not have access to credit and other financial products. Microfinance institutions (MFIs) have been particularly successful in promoting entrepreneurship in rural and semi-urban areas and in female-oriented sectors. The microfinance sector in India is growing, and many of the major players are moving the market forward.
Microfinance providers, or MFIs, are financial institutions that offer small loans who may not have banking access. Different countries have different definitions of “small loans.” However, in India, microloans (or small loans) are defined as any loan under one lakh rupees. Personal loans can also be thought of as an alternative since they may provide a similar purpose / financial assistance opportunity as MFIs. In this blog, we will explore the top microfinance firms in India in 2025.
List Of The Top 10 Microfinance Firms in India 2025
1. Ujjivan Small Finance Bank
Ujjivan Small Finance Bank, a subsidiary of Ujjivan Financial Services Limited, has been a pioneer in blending financial inclusion since its inception. The bank provides financial services such as insurance, fixed deposits, savings accounts, and microloans. Many unbanked and underbanked customers around the country are now benefiting from Ujjivan’s focus on financial literacy.
2. Bharat Financial Inclusion Limited (BFIL)
Bharat Financial Inclusion Limited (BFIL), also known as SKS Microfinance, began in 1998 and mainly provides microloans to low-income households. Additionally, the company also provides home improvement loans and emergency loans. BFIL has traditionally supported rural women entrepreneurs with its vast branch network across the nation.
3. Bandhan Bank
Bandhan Bank began as a microfinance company in 2001 and became a fully-fledged bank in 2015. The Bank is distributed across India and has a client base of 10 million individuals and households with a diverse product portfolio that includes personal loans and microloans. Bandhan Bank has a strong brand presence in the microfinance space as a result of its outreach and focus on individual circumstances.
4. CreditAccess Grameen Limited
It is the largest microfinance company in India, with an AUM of over USD 2.6 billion and 4.25 million female clients. CreditAccess Grameen Limited was launched in 1999 as an NGO in South Bengaluru and has emerged as a publicly listed NBFC-MFI, predominantly lending microloans to rural women entrepreneurs in India.
Currently with 1,786 branches and over 16,750 employees, this organization is present in 14 states and one Union Territory. They are trying to help rural development by providing women entrepreneurs with a variety of financial products to support their life cycle needs – loans for income generation, healthcare, education, business development, etc.
5. Equitas Small Finance Bank
Equitas Small Finance Bank is one of the early entrants to the microfinance field and is located in Chennai. The emphasis is on engaging and servicing unbanked and underbanked communities. Equitas provides microloans, savings accounts, insurance, and more. The bank is committed to social accountability, and its work enhances the lives of its customers, especially women entrepreneurs.
The bank also provides loans for commercial vehicles, contributing to the growth of the logistics industry. Overall, Equitas Small Finance Bank has emerged as a major player in India’s microcredit industry since its launch in 2007.
6. Janalakshmi Financial Services
With an offering of financial products for the underserved, Janalakshmi Financial Services (now known as Jana Small Finance Bank) is a leading figure in the sector a variety of products. The business was established in 2000 and has since established an extensive branch network across the length and breadth of India. Dealing with microloans, business development loans, savings accounts, fixed deposits, and insurance, this company focuses on clients’ financial well-being.
7. Spandana Sphoorty Financial Limited
Focusing on rural women in India, Spandana Sphoorty is a microfinance institution formed in 1998 that offers a full suite of financial products, including loans and microloans. With its focus on social development and women’s empowerment, Spandana has developed a large and loyal customer base across the country.
8. Fincare Small Finance Bank
The primary aim of Fincare Small Finance Bank is to serve the unbanked and under-banked sections of society. In addition to providing microfinance products, the bank also gives personal loans and small business loans. With its customer-centric model, Fincare is one of the most promising microfinance businesses in the industry.
9. Arohan Financial Services
Arohan Financial Services is one of the leading microfinance companies focused on providing the financial requirements of low-income households. The company provides various products, including savings accounts, insurance, and microloans. Arohan is considered one of the leading microfinance companies in India, with the aim of increasing financial inclusion and impact.
10. ESAF Small Finance Bank
ESAF Small Finance Bank is a popular player in the microfinance field with a focus on empowering underserved communities. The bank, which has its headquarters in Thrissur, Kerala, has a specialty in women and rural communities and offers insurance, savings plans, and microloans. Customers’ lives have been profoundly impacted by ESAF’s complete approach to financial inclusion.
Conclusion
These top ten microfinance companies are setting the standard for financial inclusion and empowering marginalized communities as the microfinance sector in India experiences huge growth and change. Millions of individuals nationwide have benefited from these institutions’ guidance in getting access to financial services, encouraging entrepreneurship, and typically improving their quality of life.
The microfinance company’s ongoing development and impact will surely be important in improving India’s financial system.
FAQs
What is the number of microfinance companies in India?
Many microfinance companies in India serve to underprivileged populations nationwide. There are many microfinance firms operating in India, though the precise number may change due to new institutions and changes in the sector. They are important in helping people who do not have access to traditional banking options by providing financial services.
What obstacles do Indian microfinance companies have to overcome?
There are many obstacles that microfinance companies in India must overcome. Risk management when lending to low-income borrowers, disciplined repayment, obtaining affordable funding, regulation adherence, and satisfying the different financial requirements of their clients without sacrificing sustainability are some of these difficulties.
What sets apart India’s leading microfinance companies from others?
The leading microfinance companies in India are popular for their dedication to financial inclusion and outreach to marginalized communities. They are significant for their modern product lines, sound risk management procedures, open business practices, and beneficial effects on lowering poverty and promoting socioeconomic growth.
