Published Paper Details:

Microfinance has emerged as a crucial tool for financial inclusion, providing credit and banking services to the underserved population in India. This research study reviews the Indian microfinance sector during 2023-24, analysing key trends, challenges, and policy implications. The research study highlights the expansion of the Self-Help Group Bank Linkage Programme (SHG-BLP), which now covers 144.22 lakh SHGs and 17.75 crore families, with a 44% increase in loan disbursement. However, regional disparities persist, with saturation in southern states and rapid growth in the North-Eastern and Central Regions. The research study also examines the role of commercial banks, RRBs, and cooperative banks in SHG financing, noting that commercial banks account for the largest share (68%) of loan disbursement. Additionally, the decline in NPAs from 2.79% to 2.05% indicates improved repayment discipline. The integration of fintech and AI-driven lending has enhanced accessibility, yet challenges such as high interest rates, over-indebtedness, and financial literacy gaps remain. The findings suggest that policymakers should focus on regional balance, borrower protection, and digital financial education to ensure the sustainable growth of microfinance in India. This study provides valuable insights for financial institutions, regulators, and policymakers to strengthen microfinance's role in poverty alleviation and economic development.