Indian Economy News

Microfinance loans up 5.75% to Rs. 76,054 crore (US$ 9.12 billion) in Q2 FY2024

  • IBEF
  • December 6, 2023

During the second quarter of FY 2024, microfinance loans in India increased by 5.75% to reach Rs. 76,054 crore ($9.12 billion), as per industry data. In the corresponding period last year, loans amounting to Rs. 71,916 crore (US$ 8.62 billion) were disbursed. In terms of volume, the latest data from Microfinance Institutions of India (MFIN) indicates a disbursement of 1.69 crore loans in Q2 FY 2023-24, compared to 1.81 crore loans in Q2 FY 2022-2023.

As per the Microfinance Institutions Network (MFIN) Micrometre report for Q2 FY 23-24, India's microfinance loan portfolio reached Rs. 3,76,110 crore ($45.1 billion) by September 30, 2023, benefiting 7.1 crore unique borrowers through 13.9 crore loan accounts. The Microfinance Institutions (MFI) sector demonstrated robust growth with a 21% increase in the loan kitty. Among the total outstanding microloans, 39.3% were held by 91 NBFC-MFIs, totalling Rs. 1,47,829 crore ($19.9 billion). Banks, numbering 13, constituted the second-largest provider with outstanding loans of Rs. 1,18,846 crore ($16 billion), representing 31.6% of the industry portfolio. Small Finance Banks (SFBs) held a 19.4% share, amounting to Rs. 73,118 crore ($9.8 billion) in the second quarter of the current fiscal year. Additionally, NBFCs contributed 9.1%, while Other MFIs constituted 0.5% of the overall industry.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.