Kolkata, Jun 26 (PTI) Fintech company Recordent has launched a shared credit information platform for not-for-profit microfinance institutions (MFIs), aiming to help lenders identify borrowers with multiple loans and curb over-indebtedness.
The MFI Credit Registry will allow Section 8 MFIs—non-profit lenders that provide small-ticket loans primarily to low-income households—to share borrower loan and repayment data through a common platform before sanctioning fresh credit, an official said.
Unlike larger microfinance companies that have wider access to borrower information, many Section 8 MFIs have limited visibility into customers’ existing loans, increasing the risk of multiple borrowings and loan defaults, the company said.
Recordent CEO and Co-Founder Winny Patro said Section 8 MFIs, which operate as not-for-profit entities, currently manage an estimated Rs 4,000 crore of assets.
The company said the registry has already been used with 10 Section 8 MFIs, and the results have been encouraging.
Developed in consultation with Sa-Dhan, the RBI-appointed self-regulatory body for the microfinance sector, the platform combines data shared by participating MFIs with credit bureau information to generate a consolidated borrower credit report.
According to the Microfinance Insights Report (February 2026) by Equifax, India’s microfinance sector has a loan portfolio of Rs 3.2 lakh crore spread across 10.5 crore active loans.
“The MFI Credit Registry is built in the interest of the sector to empower NPO MFIs with better data, reduce lending risk, and enable responsible financial inclusion. Its success depends on collective participation. The more institutions contribute, the stronger and more effective the ecosystem becomes,” Patro said.
Recordent said the platform is expected to help lenders improve credit appraisal, detect financial stress early and make faster lending decisions, while reducing the chances of borrowers taking excessive loans from multiple institutions.
The company, whose latest funding round values it at Rs 125 crore, currently provides credit risk and receivables management solutions to around 12,000 seller and manufacturer SMEs. PTI BSM NN
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