Fusion Finance Highlights Uttar Pradesh’s Strategic Role in MFI Market

Fusion Finance Limited has reaffirmed its strategic focus on Uttar Pradesh, identifying it as a significant market for microfinance and MSME lending. The company has highlighted the state’s role in advancing financial inclusion and sustainable lending growth. Uttar Pradesh is central to Fusion Finance’s operating strategy due to its large rural and semi-urban population, growing entrepreneurial activity, and demand for credit among low-income households and micro-entrepreneurs.

As of December 31, 2025, Fusion Finance’s portfolio in Uttar Pradesh stood at INR 1837 Crore. This includes INR 1543 Crore in microfinance, representing 25% of the company’s overall MFI book, and INR 294 Crore in MSME lending, representing 40% of the MSME book. The company operates 271 MFI branches and 28 MSME branches in the state, serving approximately 5.52 lakh active MFI loan accounts and 8,000 MSME loan accounts. Across India, Fusion Finance’s total Asset Under Management (AUM) was INR 6876 Crore as of December 31, 2025, with over 23.4 lakh customers.

Fusion Finance leverages disciplined credit execution, improving asset quality, and strong operational fundamentals to support sustainable growth. The company has reinforced its institutional framework in Uttar Pradesh by strengthening branch-level monitoring, expanding digital onboarding, and deploying analytics for credit decisioning. These measures have accelerated disbursement processes and improved operational efficiency.

Uttar Pradesh represents a structurally strong and diversified credit market. The state holds nearly 11% market share in the MFI space. Increasing financial awareness, formalization of rural credit channels, and wider digital adoption are enhancing access to organized finance. These trends, combined with a resilient repayment culture and a shift toward responsible underwriting practices, position Uttar Pradesh as a high-growth region within India’s microfinance landscape.

Fusion Finance has outlined its commitment to investing in digital capabilities, risk-based underwriting, and real-time monitoring tools to enhance customer experience and build high-quality portfolios. The company aims to support the evolving credit landscape in Uttar Pradesh and maintain its growth momentum in the coming quarters.

Fusion Finance Limited, formerly known as Fusion Micro Finance Limited, is a leading Non-Banking Financial Company-Microfinance Institution (NBFC-MFI) in India. Founded in 2010, the company focuses on providing financial services to underserved and unserved women entrepreneurs in rural areas. With an extensive network of 1537 branches across 22 states, including 3 Union Territories, Fusion Finance is committed to creating opportunities at the bottom of the pyramid and supporting sustainable, long-term growth.