Discover the top 10 microfinance companies in India with updated 2026 insights. This blog covers the best microfinance services offered, interest rates, eligibility, and how to choose the right microfinance institution for your financial needs.
Anjali Singh
Assistant Manager
If you run a small business or need a small loan to manage your money, microfinance companies in India can help you. These companies give small loans to support people who need easy access to finance.
Let’s understand what microfinance means and how it works. You will also find a list of microfinance companies in India here.
If you're searching for the top 10 microfinance companies in India, this guide gives you a complete and updated 2026 list. You can compare services, interest rates, eligibility, and features to choose the best microfinance institution (MFI) based on your needs.
Microfinance means giving small loans and basic banking services to people who cannot get support from normal banks. It helps low-income families, small shop owners, self-employed workers and community groups. It is given to them to use as small amounts of money for their daily expenses or to grow their small businesses. So understanding the microfinance companies is important for them.
Microfinance companies follow a simple process. They check your income, basic documents and repayment capacity. Many lenders use group-based lending, where a small group supports each other’s repayments. Others offer individual loans based on your financial profile. After approval, the loan amount is given directly to your bank account and you repay it in weekly or monthly installments with interest. This is how it works.
The RBI and industry associations have adjusted rules to give NBFC-MFIs more flexibility. For example, in 2026, the RBI reduced the qualifying asset criteria for NBFC-MFIs from 75% to 60% so institutions can diversify their portfolio while remaining within the NBFC-MFI framework. This affects the microfinance companies list as they adapt products.
Industry reporting from MFIN and SIDBI shows NBFC-MFIs remain a large part of the microfinance market, though asset quality pressures affected growth in FY26. These dynamics influence interest rates and approval speed.
The top 10 microfinance companies in India include leading banks, small finance banks (SFBs), and NBFC-MFIs such as Bandhan Bank, CreditAccess Grameen, Ujjivan Small Finance Bank, and Spandana Sphoorty. These institutions offer small-ticket loans, flexible repayment options, and financial support to low-income individuals and small businesses across India.
These are the top 10 microfinance companies you should know about:
|
Rank |
Company (entity type) |
Main Services |
Typical Interest-Rate Band (approx. 2026) |
|
1 |
Bandhan Bank (Bank) |
Group-lending microloans, small business loans |
20 to 24% |
|
2 |
CreditAccess Grameen (NBFC-MFI) |
Individual & group micro loans, livelihood loans |
18 to 24% |
|
3 |
Ujjivan Small Finance Bank (SFB) |
Micro loans, small enterprise loans, savings |
18 to 25% |
|
4 |
Spandana Sphoorty (NBFC-MFI) |
Micro loans to rural clients, field collection model |
19 to 25% |
|
5 |
Bharat Financial Inclusion (Subsidiary/SFB) |
Women-focused microloans, rural outreach |
18 to 24% |
|
6 |
ESAF Small Finance Bank (SFB) |
Microcredit, micro-enterprise loans, rural deposits |
18 to 24% |
|
7 |
Arohan Financial Services (NBFC-MFI) |
Micro business loans, women-focused lending |
19 to 26% |
|
8 |
Fusion Microfinance (NBFC-MFI) |
Rural microloans, group and individual models |
18 to 24% |
|
9 |
Equitas Small Finance Bank (SFB) |
Micro and MSME loans, retail banking services |
18 to 25% |
|
10 |
Satin Creditcare (NBFC-MFI) |
Rural microloans, SHG lending, small enterprise loans |
18 to 26% |
These are some of the top 10 microfinance companies in India, widely trusted for small loans and financial inclusion.
Note: These rates are only general ranges seen across different lenders and customer types. The exact rate you get will depend on your profile, loan product, location and the lender’s costs. You can see from the industry reports (like MFIN) how the rates are charged by each lender and the usual range in the market.
In 2026, the effective annual rates charged by major NBFC-MFIs and SFBs typically range from about 18% to 26%, though some products or geographies can push that band slightly higher. Industry rate tables published by MFIN show lender-level variations and are the best source for current sheets. Always check the lender’s product chart for processing fees and GST, which add to the effective cost.
Here are the main advantages and limitations of using microfinance companies in India. This helps you decide if these services fit your needs.
Common eligibility criteria:
Typical documents:
NBFC-MFIs and SFBs can approve small-ticket loans within a few days when credentials are in order. Larger loans or loans to new customers can take longer. Field assessment and verification are common, so you need to plan for 3 to 7 business days on average for many lenders.
My Mudra is a channel partner that helps you compare offers from banks and NBFCs. If you are looking for microfinance loan providers in India, you can:
Using a channel partner like My Mudra can help you avoid repeating paperwork and let you see multiple lender options side by side.
Microfinance is still very important in 2026 because it helps people across India get easy access to money when they need it. With many RBI-regulated microfinance companies in India, borrowers now have more choices and clearer information. The right lender depends on your income, application, credit history and the purpose of your loan. It is always a good idea to compare interest rates, processing fees and eligibility before you apply. So choosing the best option is important for you. A microfinance loan can support your business, household needs or financial plans with more confidence.
If you want a simpler way to compare lenders, you can use platforms like My Mudra. We allow you to check the top 10 microfinance companies in India in one place, making the process easier for you.
Also Read:
- Best Instant Micro Finance Loan Apps in India 2026
- Micro Finance - Definition, Features & Significance
The top 10 microfinance companies in India include Bandhan Bank, CreditAccess Grameen, Ujjivan Small Finance Bank, Spandana Sphoorty, ESAF SFB, Equitas SFB, Arohan Financial, Fusion Microfinance, Satin Creditcare, and Bharat Financial Inclusion.
Interest rates typically range between 18% to 26% per annum depending on the lender, borrower profile, and loan type.
Most microfinance loans are approved within 3 to 7 working days after document verification.
Individuals with low or moderate income, small business owners, self-employed individuals, and women entrepreneurs can apply.
Compare interest rates, repayment terms, lender reputation, and eligibility criteria before selecting the best option.
Assistant Manager
Hey there, I'm Anjali Singh. With over 6 years of experience in finance, I specialize in creating content on banking, loans, and financial planning. My goal is to simplify complex financial topics and help readers make informed decisions through my articles.
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