Microfinance Portfolio shows tremendous growth
According to a report, the gross loan portfolio (GLP) of the entire microfinance industry increased 11.9% from 231,787 crores on March 31, 2020, to 259,377 crores on March 31, 2021.
According to the Micrometer report published by Microfinance Institution Network (MFIN), this increase was due to the addition of 400,000 borrowers during the 12-month period ending in March 2021, when the pandemic was raging.
MFIN is an industry association composed of 58 NBFCMFIs and 39 associate companies, including banks, small financial banks and NBFC. According to the report, as of March 31, 2021, the microfinance industry provided services to one-time borrowers of Rs 593 crore through a loan account of Rs 1.083 crore.
Thirteen banks own most of the microfinance investment portfolio, with a total outstanding loan of 11,277.1 billion rupees, accounting for 43.67% of the total microfinance.
However, the report shows that the non-bank financial company Microfinance Institution (NBFCMFI) is the second-largest credit provider with outstanding loans of 80,549 crore rupees, accounting for 31.05% of the industry’s total investment portfolio.
The total outstanding loans of small financial banks (SFB) amounted to Rs 41,170 crore, which accounted for 15.87% of the total share. It said that NBFC accounted for another 8.36%, and other microfinance institutions accounted for 1.05% of total microfinance.
As of March 31, 2021, the report showed that NBFC-MFI’s total loan portfolio increased by 11% to Rs 814.75 billion, compared to Rs 734.12 billion as of March 31, 2020.
NBFC-MFI’s LPG includes its own portfolio of 6,889.4 crore rupees, it said and managed an investment portfolio of 12,581 crore rupees. The association stated that its NBFC-MFI members repaid 57.891 million loans through 17 million accounts in the fiscal year 2021.
According to the report, the average loan amount per account in FY20-21 was Rs 35,726, increasing about 20% over the previous fiscal year. In FY20-21, NBFCMFI received a total debt financing of Rs 40,797 crore, 9.2% higher than in FY19-20. As of March 31, 2021, the total capital of NBFCMFI has increased by 15% to Rs 18,663 crore.