Microfinance Loan Portfolio Hits Rs 3.76 Lakh Cr in Q2 FY24: MFIN

Kolkata, Dec 5 (PTI) Microfinance loan portfolio at the end of the second quarter of the current financial year stood at Rs 3.76 lakh crore, serving 7.1 crore borrowers, an industry body report said.

According to the report prepared by Microfinance Institutions Network (MFIN), a self-regulatory body of the NBFC-MFIs, microloan disbursals during the July-September quarter of 2023-24 touched Rs 76,054 crore, as compared to Rs 71,916 crore in the same period of the previous financial year.

Gross loan portfolio (GLP) of the microfinance industry stood at Rs 3.76 lakh crore, reflecting a rise of 25 per cent over the year-ago period, the report said.

NBFC-MFIs totalling 91 are the largest provider of microfinance, followed by banks, small finance banks and non-banking financial institutions.

In terms of regional distribution of GLP, the east, the northeast and the south account for 63 per cent of the total portfolio, the report said.

Among the NBFC-MFI members of MFIN, assets under management (AUM) stood at Rs 1,33,963 crore at the end of the second quarter, registering a year-on-year growth of 39.2 per cent, it said.

The average loan amount disbursed during the second quarter of the current fiscal was Rs 41,373, which is 0.4 per cent lower than the similar previous period.

During the second quarter of 2023-24, NBFC-MFIs received Rs 26,503 crore of debt funding, and Rs 28,138 crore of equity funding.

MFIN CEO and director Alok Misra said that MFIs continue to contribute to the financial inclusion landscape by adding 1.9 crore accounts under their fold.