Microfinance loan portfolio reaches Rs 2,31,788 crore in FY20

The microfinance industry served 5.89 crore unique borrowers through 10.54 crore loan accounts. The industry currently has a total loan portfolio of Rs 2,31,788 crore for loans originating after February 2017, reveled  Microfinance Institutions Network (MFIN) in its 33^rd issue of its Micrometer report for January-March 2020 i.e. Q4 FY 2019-20.

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MFIN is a RBI recognised self-regulatory organization and industry association of the microfinance industry in India, today released

Speaking on the occasion, Harsh Shrivastava, MFIN CEO said, “In a difficult year, it is heartening that microfinance was able to get more liquidity from its lenders and in turn increase its outreach by adding new branches, hiring more staff, and thus reach more borrowers.”

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Lenders hold the largest share of portfolio in micro- credit with total loan outstanding of Rs 92,281Crore, which accounts for 39.8 percent of total micro-credit universe, reported MFIN.  NBFC-MFIs are the second largest provider of micro-credit with a loan amount outstanding of Rs73,792Cr, accounting for 31.8 percent to total industry portfolio. SFBs have a total loan amount outstanding of Rs 40,556Cr with total share of 17.5 percent. NBFCs account for another 9.8 percent and other MFIs account for 1.1 percent of the universe.

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As on 31 March 2020, aggregated GLP of MFIN Member NBFC-MFIs stood at Rs74,371 Cr with a growth of 31 percent in comparison to 31 March 2019. The average ticket size of these NBFC-MFIs at Rs 27,754 duringFY 2019-20 is an increase of6 percent over FY 2018-19.

In terms of regional distribution of portfolio (GLP), East and North East accounts for 34 percent of the total NBFC MFI portfolio, South 27 percent, North 13 percent, West 15 percent and Central contributes 11 percent percent.

Five top states in terms of loan amount outstanding for MFIN Member NBFC-MFIs are Bihar, Karnataka, TamilNadu, Maharashtra and Odisha. They account for 49 percent of GLP and top 10 states account for 79per cent of the total loan amount outstanding.