The Top 10 Microfinance Companies in India

In a country where millions still remain outside the formal banking ecosystem, microfinance has emerged as a powerful instrument of economic inclusion. Across rural and semi-urban India, particularly among women borrowers and first-time entrepreneurs, microfinance institutions (MFIs) have enabled access to structured credit, financial literacy, and income-generating opportunities.

Over the past two decades, India’s microfinance sector has evolved into a regulated and systemically significant segment of the financial services industry. Today, the sector operates under the regulatory supervision of the Reserve Bank of India, with NBFC-MFIs, Small Finance Banks, and commercial banks collectively serving millions of borrowers across the country.

The institutions listed below have been selected based on their scale of operations, geographic presence, regulatory standing, and overall contribution to India’s financial inclusion landscape. The numbering is for reference only and does not indicate ranking.

The Evolution of Microfinance in India

Microfinance extends beyond the provision of small-ticket loans. It represents structured financial access for individuals historically excluded from traditional banking systems due to lack of collateral, formal income proof, or credit history.

From early group-lending models to digitally enabled credit assessment frameworks, the sector has undergone substantial transformation. Regulatory refinements, responsible lending norms, borrower protection guidelines, and technology adoption have collectively strengthened institutional resilience and governance standards.

Government-led initiatives promoting financial inclusion, combined with digital payment infrastructure, have further accelerated outreach and integration with mainstream banking.

Top 10 Microfinance Companies in India

1. Bandhan Bank

Originally established as a microfinance institution in 2001 before transitioning into a universal bank, Bandhan Bank maintains strong roots in group-based micro-lending. Its deep presence in eastern and northeastern India has played a meaningful role in expanding credit access among underserved communities. Microfinance continues to remain a core component of its portfolio alongside retail and deposit banking services.

2. CreditAccess Grameen Limited

One of India’s leading NBFC-MFIs, CreditAccess Grameen focuses predominantly on women borrowers in rural and semi-urban regions. The institution follows a disciplined joint-liability group (JLG) lending methodology and has demonstrated consistent geographic expansion supported by standardized credit processes and portfolio management practices.

3. Jana Small Finance Bank

Evolving from a microfinance-focused entity into a licensed Small Finance Bank, Jana integrates microcredit with full-service banking offerings, including savings accounts and digital banking products. This progression supports borrower graduation from basic credit access to broader financial participation.

4. Spandana Sphoorty Financial Limited

Founded in 1998, Spandana Sphoorty Financial Limited operates as an NBFC-MFI with a strong rural presence. The institution emphasizes structured lending operations, disciplined field processes, and responsible credit expansion, particularly among women borrowers. Its long-standing field network has enabled sustained borrower engagement.

5. Equitas Small Finance Bank

Headquartered in Chennai, Equitas transitioned from a microfinance NBFC into a Small Finance Bank. Its inclusive banking model combines microloans with savings, insurance, and small business financing. The bank maintains a strong emphasis on financial inclusion while diversifying across asset classes.

6. Ujjivan Small Finance Bank

With origins in urban and semi-urban microfinance lending, Ujjivan integrates credit delivery with financial literacy initiatives. The institution’s focus on customer education alongside lending supports long-term borrower stability and responsible repayment behavior.

7. IndusInd Bank (Microfinance Portfolio)

Following the merger of Bharat Financial Inclusion Limited in 2019, IndusInd Bank incorporated large-scale microfinance operations into its lending portfolio. The integration reflects the sector’s convergence with mainstream banking and demonstrates how microfinance has become embedded within diversified banking structures.

8. Fincare Small Finance Bank

Fincare focuses on serving unbanked and underbanked populations through microloans and small business financing. Its operating model blends technology-enabled processes with field engagement, enabling scalable yet localized credit delivery.

9. Arohan Financial Services Limited

Operating as a prominent NBFC-MFI, Arohan Financial Services has built a strong presence in eastern and northeastern India. The institution emphasizes structured credit assessment, responsible lending practices, and borrower protection standards aligned with regulatory guidelines.

10. ESAF Small Finance Bank

Headquartered in Thrissur, ESAF Small Finance Bank combines microfinance with community development initiatives. Its integrated approach balances financial sustainability with social impact, focusing particularly on rural and economically weaker sections.