• KSHITIJ SHUKLA
• Dr Rahul Kushwah

Micro Lending Institutions (MLIs) have emerged as an important component of India’s financial inclusion framework by extending small-scale credit and related financial services to low-income households, women, small entrepreneurs, informal workers, and other sections that often face constraints in accessing conventional banking services. The present paper examines the performance of Micro Lending Institutions in India, with particular emphasis on their growth, outreach, institutional network, borrower base, credit expansion, and contribution to inclusive finance. The study is based primarily on secondary data obtained from reports of regulatory institutions, industry associations, government agencies, and other published sources. Descriptive and trend-based statistical techniques are used to assess changes in key performance indicators over time. The analysis indicates that the micro-lending sector has experienced substantial expansion in its branch network, borrower outreach, loan portfolio, and average credit outstanding, although its growth trajectory has also been affected by regulatory changes, economic fluctuations, the COVID-19 pandemic, repayment stress, and regional disparities. MLIs have played a particularly significant role in improving access to institutional credit among economically weaker and underserved populations and in supporting livelihood activities, self-employment, micro-enterprises, and women-led economic initiatives. At the same time, concerns relating to borrower indebtedness, portfolio quality, responsible lending, operational sustainability, and uneven geographical penetration remain important. The paper concludes that strengthening responsible lending practices, credit assessment, borrower protection, digital infrastructure, financial literacy, regulatory supervision, and institutional coordination can enhance the sustainability and developmental effectiveness of the micro-lending sector. A balanced approach combining financial viability with social outreach is essential for strengthening the long-term contribution of MLIs to inclusive and equitable economic development in India.

Micro Lending Institutions, Microfinance, Financial Inclusion, Credit Outreach, Borrowers, Micro-enterprises, India.

"Performance of Micro Lending Institutions in India ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.13, Issue 10, page no.b130-b142, October-2026, Available :http://www.jetir.org/papers/JETIR2610116.pdf

"Performance of Micro Lending Institutions in India ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.13, Issue 10, page no. ppb130-b142, October-2026, Available at : http://www.jetir.org/papers/JETIR2610116.pdf