India's microfinance sector is highly concentrated, with the top 10 states representing 85% of the market, leaving many districts and villages with limited access to credit. Sa-Dhan, a microfinance industry body, is investigating reasons for this disparity and aims to encourage lenders to reach under-penetrated areas. Despite recent growth in financial inclusion, many districts have a penetration ratio of less than 30%, indicating a need for expansion in these regions.
