The growth of the NBFC-MFI sector is expected to decline to 4% in the fiscal year 2025, according to CareEdge Ratings. This slowdown is a significant drop from previous years, indicating a challenging environment for non-banking financial companies in the microfinance sector. The projected nosedive in growth reflects the current economic conditions and regulatory challenges faced by these institutions. Despite this decline, NBFC-MFIs continue to play a crucial role in providing financial services to underserved communities. It will be important for these organizations to adapt and innovate in order to navigate the changing landscape and continue their mission of financial inclusion.