This study explored the relationship between debt appetite and the lending practices of microfinance institutions (MFIs) in Camarines Sur. By examining various demographic factors such as age, income, education, and employment status, the research identifies significant determinants that influence borrowers' willingness and ability to incur debt. It highlights the crucial role of financial literacy in shaping debt- related behaviors and decisions. The findings suggest that MFIs can tailor their lending practices to meet the needs of different borrower segments better, thereby improving financial inclusion and stability. Key strategies include providing well-designed loan products, offering financial education such as Project KALINGA, and implementing proactive monitoring and support mechanisms. This approach enhances the effectiveness of MFIs and promotes responsible borrowing and sustainable economic growth in Camarines Sur. Data were obtained using descriptive correlational design to examine the connection of the level of debt appetite of borrowers in terms of personal aspects, social factors, and economic factors, the lending practices of microfinance institutions along with loan offerings, collections, insurance, and understanding borrowing behaviors of the respondents. The data were analyzed using frequency and percentage analysis, weighted means and rank, chi-square, and Pearson correlation to identify patterns and relationships among personal aspects, social factors, and economic factors. The purpose of this study is to close the knowledge gap about how lending practices, particularly in Camarines Sur, are impacted by debt appetite.