The aggregate gross loan portfolio of microfinance institutions (MFIs) grew 54% in the second quarter ended September 30 compared with the same period last year, with over 90% of MFIs (other than those under corporate debt restructuring) showing a positive year-on-year growth over Q2 FY13.
According to data released by the Microfinance Institutions Network in the seventh issue of MicroMeter, the total loan disbursals increased 50% compared with the second quarter of FY13 while loan amounts disbursed specifically for MFIs grew 65%. Funding to the industry in the second quarter of the current financial year rose 300% compared with Q1 FY14, a release said.
MFIs received total debt funding of R3,780 crore, of which 86% came from banks and rest from other financial institutions. ?It is heartening to see a high growth rate of MFIs in the under-penetrated states such as Uttarakhand, Rajasthan, Punjab and UP. The MFI?s contribution in promoting access to finance and micro-entrepreneurship is a good news,? said Alok Prasad, CEO, MFIN.