Players of the microfinance industry said there was no fundamental impact of the law of the State Government to prevent the recovery recovery of micro-Loan entities lending money. (Representative photos) Photo Credit: Naturecreator
Portfolio gross loans (GLP) of the microfinance industry in Tamil Nadu at the end of the first quarter of 2025–2026 reduced by 23.5% to 43,700 GBP Crore from 57,100 GBR comparable last year.
Meanwhile, the players of the microfinance industry said there was no major impact of the law of the State Government to prevent the recovery of micro-lyans from borrowing entities.
According to CRIF HIGH Mark, the credit office, the portfolio of gross loans dropped by 6.7% of the quarter of 46,800 GBP Crore K on March 30, 2025.
In June 2025, the Act on Lending Money Tamil Nadu (prevention of coercive events) was 2025. The provisions of the law concerning coercive negotiations against debtors also apply to the undisputed financial companies registered with the reserve bank in India and the cooperative bank and the company.
“After the smaller initial hiccups as a result of the regulation that passed through Tamil Nadu, the situation is back in Tamil Nadu. CEO, Muthoot Microfin, he said. His company has in Tamil Nadu portfolio 3 200 GBP.
Jiji Mammen, Executive Director and CEO of Sa-Dhan, the self-regulating organization for the microfinance industry, said that due to the law adopted by the state government has no major impact.
“There were cases in several pockets where some people trying to use this act. But now the collections are almost normal. Overall, things look better for the microfinance industry in the country, and by the end of the second quarter there would be a clearer picture,” he said.
All countries, with the exception of West Bengal, registered in June 2025 a two-digit decline in portfolio portfolio with gross loans with the sharpest reduction observed in Odisha (-24.7%), followed by Tamil Nadu and Karnataka (-22.9%), Crif said.
Published – 17th August 2025 17:33
