A small loan can have an impact far beyond its size. For a woman running a tailoring business in a village, a farmer buying equipment, a family opening a neighbourhood shop, or a micro-entrepreneur who cannot easily qualify for a conventional bank loan, access to a few thousand rupees at the right time can change the direction of an entire household. This is the space in which India’s microfinance companies have built some of the country’s largest financial-inclusion networks.
India now has one of the world’s biggest microfinance markets. These lenders reach millions of borrowers, particularly women in rural and semi-urban areas, through Joint Liability Groups, Self-Help Groups and increasingly through individual lending products. The Reserve Bank of India defines a microfinance loan as a collateral-free loan to a household with annual household income of up to ₹3 lakh. An NBFC-MFI is required to have at least 75% of its total assets deployed in qualifying microfinance loans.
The sector has also been through a difficult credit cycle. Loan portfolios contracted, borrower indebtedness became a concern and several lenders tightened underwriting. Conditions, however, improved noticeably during 2026. CRIF High Mark data showed portfolio-at-risk falling to 2.3% in June 2026, compared with 7.1% a year earlier.
The following ranking gives preference to established companies with meaningful scale, customer reach, recognised brands and substantial microfinance operations. Because companies report AUM differently and some are diversifying into other lending products, it should not be viewed purely as an AUM ranking.
1. CreditAccess Grameen Limited
CreditAccess Grameen stands at the top of India’s NBFC-MFI industry and remains one of the clearest examples of how microfinance can be scaled nationally without losing its rural focus.
The Bengaluru-based company primarily lends to women from low-income households, traditionally through group-lending structures. Over time, it has expanded into individual loans and other retail-finance products.
Its AUM reached approximately ₹30,319 crore at the end of June 2026, rising 16.4% year-on-year. The company also reported an improvement in portfolio quality during Q1 FY27.
CreditAccess Grameen’s combination of scale, experience, rural penetration and comparatively strong operating platform keeps it at the forefront of Indian microfinance.
Known for: Women-focused rural lending, group loans and increasingly diversified retail finance.
2. Svatantra Microfin Private Limited
Svatantra Microfin has rapidly moved into the top tier of India’s microfinance industry.
Promoted by Ananya Birla, the company became considerably larger after acquiring Chaitanya India Fin Credit and subsequently completing their amalgamation in March 2026.
Following the combination, Svatantra described itself as India’s second-largest MFI by AUM. The enlarged organisation had about ₹22,000 crore of consolidated AUM, including its housing-finance business, along with approximately 2,200 branches across 20 states.
Its rise is especially notable because it combines traditional field-based microfinance with technology-led underwriting and servicing.
Known for: Rural women borrowers, cashless lending and large-scale national expansion.
3. Satin Creditcare Network Limited
Satin Creditcare is one of the oldest large-scale microfinance companies still operating as an NBFC-led financial-services group.
Founded in 1990, it has built a particularly wide presence in northern and central India while gradually diversifying into MSME and housing finance.
Satin reported consolidated AUM of approximately ₹15,935 crore in Q1 FY27, up about 27% year-on-year. The group was serving more than 34 lakh active clients through over 2,000 locations.
Its extensive geographical spread is a major strength. CareEdge research showed Satin operating in 558 districts during the first nine months of FY26, the widest reach among the NBFC-MFI peers covered in its study.
Known for: Microfinance, rural lending and broad geographical reach.
4. Muthoot Microfin Limited
Muthoot Microfin is one of India’s largest dedicated microfinance lenders and is part of the Muthoot Pappachan Group.
Its core borrowers are women from lower-income households in rural and semi-urban India. Loans are commonly used for livestock, agriculture, small businesses, health, sanitation and other livelihood needs.
The company reported AUM of ₹14,457 crore as of June 30, 2026, representing 18% year-on-year growth. Q1 FY27 disbursements also rose sharply as operating conditions improved.
Its established parentage, nationwide expansion and experience in servicing small borrowers have helped it build a prominent position in the sector.
Known for: Women-focused microloans, livelihood finance and rural financial inclusion.
5. IIFL Samasta Finance Limited
IIFL Samasta has grown from a regional microfinance operation into a major national lender.
Established in 2008 and associated with the IIFL Group, it focuses primarily on economically empowering women in rural and semi-urban communities.
As of December 2025, Samasta had AUM of approximately ₹9,681 crore. Its geographical network extends across 22 states and around 1,660 branches.
Its offerings extend beyond standard income-generation loans and include products linked to water, sanitation and household requirements.
Known for: Women borrowers, income-generation credit and a wide pan-India branch network.
6. Annapurna Finance Private Limited
Bhubaneswar-based Annapurna Finance has developed into one of the important names in India’s microfinance industry, particularly in eastern and rural markets.
The company originally grew by serving economically weaker households but has gradually broadened its lending portfolio.
CareEdge’s 2026 industry research placed Annapurna among the major NBFC-MFI peers and showed it operating across 457 districts during 9MFY26.
Its Odisha roots and experience in underpenetrated regions distinguish it from many lenders that initially concentrated on larger urban markets.
Known for: Rural microfinance, women borrowers and strong presence in eastern India.
7. Belstar Microfinance Limited
Belstar is another substantial microfinance company with a particularly interesting lending model.
The Chennai-based company has historically used both Self-Help Group and Joint Liability Group approaches. It is backed by Muthoot Finance, giving the company access to the broader strength of a major financial-services group.
Belstar had AUM of ₹8,222 crore at March 31, 2026 and operated through more than 1,300 branches. Its July 2026 flash report showed around 18.7 lakh active borrowers.
Known for: SHG finance, women entrepreneurs and rural lending.
8. Arohan Financial Services Limited
Arohan Financial Services has built its business around some of India’s most financially underserved regions.
Part of the Aavishkaar Group, the Kolkata-based NBFC-MFI offers income-generation loans along with other financial-inclusion products.
Arohan reported AUM of a little over ₹6,300 crore, while its network has expanded considerably across rural and semi-urban markets.
Its focus on eastern India and lower-income states gives Arohan an important role in extending organised finance into areas where traditional banking penetration can be limited.
Known for: Financial inclusion, eastern India and income-generating microloans.
9. Fusion Finance Limited
Fusion Finance remains one of India’s recognised large microfinance players despite experiencing significant stress during the industry downturn.
Its traditional business revolves around providing collateral-free loans to women entrepreneurs through the joint-liability model. The company has built operations across hundreds of districts and remains an important participant in the sector.
In 2026, Fusion also began placing greater emphasis on diversification, with plans to gradually reduce the proportion of microfinance in its overall portfolio while expanding larger retail loans.
Its inclusion reflects its scale and established nationwide presence, although its recent credit-cycle experience makes asset-quality recovery particularly important.
Known for: Women entrepreneurs, JLG lending and nationwide microfinance operations.
10. Asirvad Micro Finance Limited
Asirvad Micro Finance completes the list as another long-established name with significant rural reach.
The company is part of the Manappuram Finance Group and has historically focused on providing microcredit to low-income women for income-generating activities.
Although Asirvad was among the lenders affected significantly during the recent microfinance stress cycle, it continues to have a substantial branch network, experienced parent backing and a recognised position within the industry. CareEdge included it among the major NBFC-MFI peers in its 2026 industry assessment.
Known for: Rural microcredit, women borrowers and Manappuram Group backing.
Why Microfinance Companies Matter in India
Microfinance is not simply about offering smaller versions of bank loans.
Many borrowers have irregular income, little formal credit history and no traditional collateral. A conventional lending system may therefore find them difficult to assess. MFIs have created local networks, group-based repayment systems, specialised underwriting and frequent borrower interaction to serve this population.
Women are especially central to this model. A large proportion of microfinance credit supports activities such as dairy farming, tailoring, food businesses, livestock, agriculture, handicrafts and small retail shops.
Technology is also changing the industry. Aadhaar-based verification, credit-bureau checks, cashless disbursement, mobile collections and digital underwriting are making it easier to identify overleveraged borrowers and process loans efficiently.
What Makes a Good Microfinance Company?
Large AUM alone does not make an MFI strong.
A quality microfinance company needs disciplined underwriting, high collection efficiency, adequate capital, controlled NPAs and geographical diversification. Responsible lending is particularly important because many customers have limited financial buffers.
Industry guardrails have consequently become stricter, including limits on the number of lenders serving one borrower and controls on total microfinance indebtedness.
Frequently Asked Questions
Q1. Which is the largest microfinance company in India in 2026?
CreditAccess Grameen remains India’s largest NBFC-MFI, with AUM of approximately ₹30,319 crore as of June 2026.
Q2. Which company is the second-largest MFI in India?
Svatantra Microfin describes itself as India’s second-largest MFI by AUM following the amalgamation with Chaitanya India Fin Credit.
Q3. Do microfinance companies give loans without collateral?
Microfinance loans covered by the RBI definition are collateral-free loans provided to eligible low-income households.
Q4. Are all microfinance companies banks?
No. Major companies such as CreditAccess Grameen, Muthoot Microfin, Satin and Arohan operate as NBFC-MFIs. Small finance banks and commercial banks can also have large microfinance portfolios, but their regulatory structure is different.
India’s leading microfinance companies have moved far beyond being small local lenders. The largest now manage loan portfolios running into tens of thousands of crores and reach millions of families. Their next phase of growth, however, will depend less on simply giving more loans and more on responsible lending, stronger borrower assessment, healthier asset quality and sustainable financial inclusion.
