MFI body seeks greater penetration of credit flow for growth

Unless credit flows to the bottom of the pyramid, economic activity will be stunted, and growth will be hurt, he said.As of September 2025, the total outstanding of the MFI sector in India is around Rs 3.4 lakh crore with 75 million beneficiaries.

Association of Microfinance Institutions in West Bengal (AMFI-WB) on Tuesday said that there is a need for greater penetration of credit flow to support the growth of the sector.

Chairman of AMFI-WB Manoj Nambiar said that presently, only one-third of the target segment, who are living at the bottom of the pyramid, are getting access to formal credit through the microfinance institutions.

''There is a big gap which needs to be penetrated by the MFIs for giving formal credit and subsequently help the sector to grow'', he told reporters.

Nambiar, also the managing director of Arohan Financial Services Limited, said that the MFI sector is critical in promoting financial inclusion in the country. ''Unless credit flows to the bottom of the pyramid, economic activity will be stunted, and growth will be hurt'', he said.

As of September 2025, the total outstanding of the MFI sector in India is around Rs 3.4 lakh crore with 75 million beneficiaries. In West Bengal, the outstanding portfolio of the MFIs is Rs 35,000 crore with one crore beneficiaries, he said.

The penetration level in West Bengal is around 35 per cent, he said, adding that there is a need to grow this.

Nambiar claimed that West Bengal is one of the best states in terms of collection efficiency.

AMFI-WB is organising a microfinance summit in the metropolis on December 10.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)