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Recordent Launches MFI Credit Registry for Section 8 Microfinance Institutions
Fintech company Recordent launches a shared credit information platform, the MFI Credit Registry, for not-for-profit microfinance institutions (MFIs). The platform enables Section 8 MFIs to share borrower loan and repayment data before sanctioning fresh credit, and it is developed in consultation with Sa-Dhan.
MFI Credit Registry (Recordent):
| Dimension | Key Details |
|---|---|
| Implementing entity | Fintech company Recordent launches the MFI Credit Registry as a shared credit information platform for not-for-profit MFIs. |
| Coverage | The platform applies to Section 8 MFIs, described as non-profit lenders serving low-income households. |
| Stated aim | The registry provides for reducing defaults by helping lenders identify borrowers with multiple loans and curb over-indebtedness. |
| Data shared by MFIs | The registry authorises Section 8 MFIs to share borrower loan and repayment data before sanctioning fresh credit. |
| Data integration | The platform combines data shared by participating MFIs with credit bureau information to generate a consolidated borrower credit report. |
| Partnerships and consultation | The platform is developed in consultation with Sa-Dhan, described as the RBI-appointed self-regulatory body for microfinance. |
| Current platform coverage | The platform already covers 10 MFIs. |
| Benefits for MFIs | Provides four benefits: improved credit appraisal, early stress detection, faster lending decisions, and reduced risk of multiple loans. |
| Scale of Section 8 MFI segment | Section 8 MFIs currently manage an estimated ₹4,000 crore of assets. |
| Scale of India’s microfinance sector | As per the Microfinance Insights Report (February 2026) by Equifax, India’s microfinance sector has a loan portfolio of ₹3.2 lakh crore across 10.5 crore active loans. |
| Microfinance Institutions | Microfinance institutions comprise bodies established to support business development and community empowerment, especially owners of small business entities or MSMEs. |