The Micro Finance Industry Network and the National Council of Applied Economic Research have conducted a survey revealing a significant shift in borrowing patterns among microfinance customers in India. Informal borrowing has plummeted to 1% in FY25 from 46% in 2011, indicating a move towards formal, regulated credit sources. The survey, which included 10,342 borrowers across 10 states, found that 100% of loan disbursements are now digital, while 12% of repayments are made digitally. More than 75% of loans are utilized for income-generating activities, with many borrowers repaying from business income. The survey also noted that 78% of borrowers contribute to household income, and over half depend on income from loan-funded activities for repayments. Alok Misra, CEO of the Micro Finance Industry Network, emphasized the need for improved credit assessment to mitigate risks of over-indebtedness. V Anantha Nageswaran, Chief Economic Advisor to the Government of India, expressed optimism about the findings, highlighting the potential for microfinance institutions to enhance financial literacy and support sustainable livelihoods.