Fusion Finance plans to reduce its dependence on microfinance and build a more diversified lending portfolio, with individual loans emerging as the next key growth driver. The company currently derives around 88 per cent of its portfolio from microfinance, while MSME loans account for about 12 per cent of AUM. Fusion plans to launch its individual loan product from September, subject to the rollout plan. Fusion’s MSME portfolio is focused largely on shopkeepers and retail businesses, with loans backed primarily by self-occupied residential or commercial properties. The same for previous two quarters were Rs 20 crore and Rs 18 crore.