Microfinance industry posts 38% growth in 2018-19; total number of accounts stands at 9.33 crore

New Delhi: The microfinance industry’s gross loan portfolio (GLP) stood at Rs 1,87,386 crore at the end of March, up 38 percent year-on-year, said an MFIN report Monday. The total number of microfinance accounts was 9.33 crore at the end of March 2019, showing a growth of 21.9 percent, said Microfinance Institutions Network (MFIN), an RBI-recognised self-regulatory organisation and industry association of the microfinance industry. Non-Banking Finance Company-Microfinance Institutions (NBFC-MFIs) hold the largest share of the portfolio in micro-credit with the total loan outstanding of Rs 68,868 crore, which is 36.8 percent of total micro-credit universe. As on 31 March, 2019, aggregated GLP of NBFC-MFIs stood at Rs 68,207 crore, 47 percent year-on-year growth compared to March 2018, said MFIN. [caption id=“attachment_6004721” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] In 2018-19, microfinance in India showed rapid, regionally-balanced and resilient growth, said Harsh Shrivastava, chief executive officer, MFIN. “Apart from the growth in loan size and loan accounts, the growth of the staff of NBFC-MFIs was also heartening at 34 percent, now totalling to 1,04,973 people,” he said. Eastern India’s growth continues, with Bihar and Odisha now ranked 2 and 3 in terms of states, MFIN added. MFIN members constitute 53 NBFC-MFIs and, collectively, they have disbursed 3.25 crore loans worth Rs 82,928 crore during 2018-19. Compared with the financial year 2017-18, there has been a year-on-year increase of 28 percent in number of loans disbursed and 44 percent in loan amount disbursed. In 2018-19, NBFC-MFIs received a total of Rs 35,759 crore in debt funding (from banks and other financial institutions). “This represents a growth of 63 percent compared to 2017-18. Total equity grew by 42 percent during the same period and is at Rs 14,206 crore,” MFIN said. MFIN’s current primary members consist of 53 NBFC-MFIs along with 38 associates including banks, small finance banks and NBFCs.