Until now, availability of formal sector finance and the existence of physical infrastructural bottlenecks have held these enterprises back, limiting their growth. However, an increasing number of financial institutions have realised the colossal potential that this segment offers and begun catering to it as a matter of mutual benefit. As a testament to this trend, in recent times, while the financial sector in general and more specifically non-banking finance companies experienced tight liquidity conditions, figures released by MFIN, the association of microfinance providers revealed that the microfinance industry saw robust loan disbursement. Predominantly issuing small ticket loans, the micro finance sector saw a 43 per cent increase in the grown of credit as of December 2018, compared to the same period in 2017. This was on the back of a 51 per cent year-on-year growth in the second quarter of FY 2018-19,ended December 2018, as well. The growth in micro-finance disbursement becomes more impressive when seen against the backdrop of some MFIs transforming into banks while others have been acquired in recent quarters.