Should The Microfinance Lending Model Change Now? Ravi Narayanan Answers

At the BT Best Banking & Economy Summit, Ravi Narayanan, MD & CEO of SMFG India Credit, said microfinance does not need a structural overhaul but a measured evolution. He emphasized that the sector’s foundational goal was to bring the “credit invisible” into the formal system — a target India has largely achieved. As aspirational households move toward asset building, diversification is a natural progression for financial institutions. However, Narayanan cautioned against unnecessary policy shifts or abrupt structural changes that could create volatility. Instead, he called for stability, responsible growth and strong customer protection, while allowing the industry to evolve organically through cycles.