Microfinance loans up 5.75% to ₹76,054 crore in Q2 FY2024: MFIN report | Mint
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Business News/ Industry / Microfinance loans up 5.75% to 76,054 crore in Q2 FY2024: MFIN report
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Microfinance loans up 5.75% to ₹76,054 crore in Q2 FY2024: MFIN report

According to the MFIN Micrometer report for Q2 FY 23-24, India's microfinance loan portfolio stood at ₹3,76,110 crore as of 30 September 2023, serving 7.1 crore unique borrowers with 13.9 crore loan accounts.

Microfinance loans in India grew by 5.75% to ₹76,054 crore in Q2FY2023 (REUTERS)Premium
Microfinance loans in India grew by 5.75% to 76,054 crore in Q2FY2023 (REUTERS)

Microfinance loans in India grew by 5.75% to 76,054 crore during the second quarter of FY 2024, industry data showed. Last year, 71.916 crore of loans were disbursed in the same period.

In terms of volume, a total of 1.69 crore were disbursed during Q2 FY2023-24, as against 1.81 crore loans in Q2 FY 2022-2023, as per the latest data by Microfinance Institutions of India (MFIN).

Microfinance institutions empower women entrepreneurs amidst social challenges

According to the MFIN Micrometer report for Q2 FY 23-24, India's microfinance loan portfolio stood at 3,76,110 crore as of 30 September 2023, serving 7.1 crore unique borrowers with 13.9 crore loan accounts.

MFI sector posts 21% growth in loan kitty

Of the total microloans outstanding, the largest share of 39.3% is held by 91 NBFC-MFIs amounting to 1,47,829 crore.

While 13 banks are the second-largest provider of micro-credit with a loan amount outstanding of 1,18,846, that is 31.6% of the total industry portfolio.

SFB's share on micro-credit was 19.4% at 73,118 crore in the second quarter of the current fiscal year. NBFCs accounted for another 9.1% and Other MFIs accounted for 0.5% of the overall industry.

Let’s not conflate microfinance with self-help-group financing

In terms of regional distribution of the gross loan portfolio, East, Northeast, and South India accounted for 63% of the total portfolio.

Bihar continues to be the largest state for Microfinance operations with Tamil Nadu and Uttar Pradesh occupying the second and third spot respectively.

Microfinance sector set for a new growth wave, say analysts

"Microfinance continues to contribute to the Financial Inclusion landscape by adding another 1.9 Crore unique clients over the last financial year to its fold. Growth momentum of the Microfinance industry has continued in Q2 FY 23-24 taking the portfolio to 3,76,110 crore. This is a stellar growth of 25% on a YoY basis. The portfolio quality has also come near pre-COVID levels with PAR 30 days to 180 days at 2.0%," Dr Alok Misra - CEO and Director at MFIN said.

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ABOUT THE AUTHOR
Mansi Jaswal
I write about gender-related issues, women's rights, women empowerment, gender equality, women's health topics, and their wealth management. Also, profiling women who have fought all odds to make their own identities in their own rights. Before Mint, I worked at Business Today and Business Standard. I studied journalism at IIMC, Delhi. Got a story idea? Email me at mansi.jaswal@htdigital.in
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Published: 05 Dec 2023, 02:53 PM IST
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