Microfinance sector recovers after stress cycle but caution prevails amid geopolitical, inflation risks

Portfolios at risk (PAR), a measure of the percentage of loans overdue by number of days, has declined across the industry. According to CRIF High Mark’s microlending report, early-stage PAR on the 1-30-day package and 31-90-day package dropped below 1%, while the PAR 91-180 decreased from 3.4% in March 2025 to 1.2% in March 2026; This is the best level in five quarters.