Microfinance loan book grows 43% to Rs 1.66 lakh crore in December quarter

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Updated: February 26, 2019 2:37:17 AM

The loan book of NBFC-MFIs grew by 44% y-o-y to Rs 60,631 crore for the quarter ended December 2018, from Rs 42,137 crore, being able to shed the liquidity crunch in the system.

microfinance loan, microfinance loan in india, microfinance loan growthThe MFIN constitutes of 50 NBFC-MFIs which disbursed loans worth Rs 19,919 crore to 77 lakh accounts in December 2018, 81% of which was cashless.

The microfinance loan book across lenders grew by 43% year-on-year (y-o-y) to Rs 1.6 lakh crore in Q3FY19, led by the growth in the loan book of non-banking financial companies listed as microfinance institutions (NBFC-MFIs).

The loan book of NBFC-MFIs grew by 44% y-o-y to Rs 60,631 crore for the quarter ended December 2018, from Rs 42,137 crore, being able to shed the liquidity crunch in the system.

These lenders together dominate the micro lending industry with a 36.5% share of the entire loan portfolio, according to Microfinance Institutions Network (MFIN).

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Harsh Shrivastava, CEO, MFIN said, “The microfinance industry overall continues to showcase strong growth rate with healthy portfolio quality. Microfinance institutions, especially NBFC-MFIs that hold the largest share in the micro-credit space, have shed off the impact of last year’s liquidity crunch and are focusing on steady growth in loan portfolio
as well as number of clients in the coming quarters.”

The MFIN constitutes of 50 NBFC-MFIs which disbursed loans worth Rs 19,919 crore to 77 lakh accounts in December 2018, 81% of which was cashless. During Q3FY19, member NBFC-MFIs received a total of Rs 8,235 crore in debt funding, up 11% Q-o-Q, MFIN added.

In addition to the NBFC-MFIs’ dominant market share, banks contribute 32.2%, small finance banks (SFBs) have 18.2% share whereas NBFCs’ share is 10.7% and non-profit MFIs account for 2.4%.

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