According to the most recent report released by MFIN, an association of NBFC-microfinance institutions and associates including banks, small finance banks (SFBs), and non-banking financial corporations (NBFCs), the gross loan portfolio (GLP) of the microfinance industry increased by 22% to US$ 42 billion (Rs. 3.48 lakh crore) as of March 31, 2023 from US$ 35 billion (Rs. 2.85 lakh crore) as of March 31, 2022.
With the development in volume and amount of loans disbursed, the GLP increased by 8.6% from US$ 39 billion (Rs. 3.20 lakh crore) as of the December quarter in the previous fiscal.
In comparison to 6.30 crore loans totalling US$ 29 billion (Rs. 2.39 lakh crore) disbursed in FY22, 7.17 crore loans totalling US$ 36 billion (Rs. 2.96 lakh crore) were disbursed during FY23, demonstrating a higher ticket size of new loans.
Further, among lenders in the microfinance industry, 82 NBFC-microfinance institutions (MFIs) were the largest provider of micro-credit as of March 31, 2023, with a loan amount outstanding of US$ 17 billion (Rs. 1.38 lakh crore), accounting for 39.7% of the total GLP.
The microfinance sector’s growth momentum is anticipated to continue, with assets under management (AUM) rising by about 25% year-over-year (YoY) in the current fiscal year, supported by steady disbursement growth and a strengthening macroeconomic environment, according to a study conducted by credit rating agency CareEdge in April.
