Microfinance Loan Disbursals Rise 19% To Rs 77,877 Crore In December Quarter: MFIN Micrometer

The total microfinance loan portfolio increased to Rs 3.21 lakh crore as on Dec. 31, 2022, the report said.
<div class="paragraphs"><p>(Source: Freepik)</p></div>
(Source: Freepik)

Loan disbursals by microfinance companies increased 19% to Rs 77,877 crore during the December 2022–23 quarter, according to the MFIN Micrometer.

The total microfinance loan portfolio increased to Rs 3.21 lakh crore as of Dec. 31, 2022, the report said.

"Microfinance loan disbursals during Q3 FY 22–23 improved to Rs 77,877 crore as compared to the same quarter of last financial year (Rs 65,392 crore). A total of 189 lakh loans were disbursed during Q3 FY 22–23 as against 165 lakh in Q3 FY 21–22, indicating a higher ticket size of new loans," it said.

It further said that as of Dec. 31, 2022, the microfinance industry served 6.4 crore unique borrowers through 12.6 crore loan accounts.

"The overall microfinance industry currently has a total gross loan portfolio of Rs 3,20,584 crore. GLP as of Dec. 31, 2022, showed an increase of 25.2% YoY over Rs 2,56,058 crore as of Dec. 31, 2021," the report said.

As per the 44th issue of MFIN Micrometer, 83 NBFC-MFIs were the largest provider of microcredit, with a loan amount outstanding of Rs 1,23,386 crore, accounting for 38.5% of the total industry portfolio.

During Q3 FY 22-23, NBFC-MFIs received a total of Rs 15,951 crore in debt funding, which is 22.5% higher than Q3 FY 21-22. Total equity of the NBFC-MFIs grew by 28.6% YoY to Rs 24,897 crore as of Dec. 31, 2022.

"By the end of this quarter, NBFC-MFIs have emerged as the largest provider of microfinance services, followed by banks, who were the largest providers until the last quarter," said Alok Misra, CEO and Director, MFIN (Microfinance Institutions Network).

"It is an encouraging sign that all regulated entities have registered healthy growth on a YoY basis during Q3 of FY 22–23. Further, Bihar has emerged as the state with the largest microfinance portfolio," he added.

In terms of regional distribution of GLP, East and Northeast, and South account for 63% of the total portfolio. Bihar is the largest state in terms of portfolio outstanding, followed by Tamil Nadu and West Bengal.

MFIN is an RBI-recognised self-regulatory organization for the industry.

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