According to a report by Micro Finance Industry Network (MFIN), the gross loan portfolio of the microfinance industry increased by 25 per cent YoY to Rs 4.3 trillion as of March 31.
Through 149 million accounts, the industry provided services to 78 million distinct borrowers. With 39.4 per cent of the entire industry portfolio, NBFC-MFIs are the biggest microlenders.
As of March 31, the total amount of loans outstanding for NBFC-MFIs was Rs 1.7 trillion.
Assets Under Management
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Rs 1.6 trillion of assets managed by NBFCs and MFIs increased by almost 30 per cent year over year. AUMs include a Rs 30,641 crore off-balance sheet exposure. In 2023–2024, the average loan amount disbursed per account increased by 9.9 per cent to Rs 45,024.
Together, NBFC-MFIs employ 1,83,842 people across a network of 20,348 branches.NBFC-MFIs received a total of Rs 89,308 crore in debt funding during 2023–24 (April–March), a 29.1 per cent increase over 2022–2023 levels.
At 33.2 per cent of the total universe of microcredit, banks hold the second-largest portfolio share. The total amount of bank loans outstanding was Rs 1.4 trillion.
In the microfinance sector, diversified non-banking financial companies have a 9.3 per cent market share, compared to 17.1 per cent held by small finance banks.
Regional Devlopments
The east, northeast, and south make up 62% of the gross loan portfolio when it comes to regional distribution. In terms of outstanding portfolio, Bihar continues to be the largest state, followed by Tamil Nadu and Uttar Pradesh.
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