Microfinance:MFI’s loan portfolio grew by 6% to Rs 249 lakh crore



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Loan allocation by micro finance industry, asset quality, new loan inquiries increased in September quarter. The portfolio of micro-entrepreneurs and small lenders to the industry grew by 6 per cent to Rs 249 lakh crore in the September quarter.

 

While up 2.1 per cent against June. During the second wave of Covid in the April-June period, the outstanding loans became a matter of concern as economic activity was affected. However, a report released by CRIF Highmark shows that the outstanding loans have declined for more than 30 days with rapid recovery. Loans for more than 30 days fell to 10.4 per cent in the September quarter from 15 per cent in the June quarter.

 

For more than 90 days, the outstanding loan ratio has remained stable at 3.3 per cent. The amount of inquiries for loans has recovered quickly. With the increase in loan disbursement, there is a need to maintain asset quality for micro finance companies. 4.1 per cent of borrowers have exposure to more than four MF companies. The highest proportion of such debtors is in Tamil Nadu and the lowest in Assam.

 

The

  1. allocation of loans to rural areas through micro finance of 10 states accounting for 83% of the loan portfolio is increasing more than urban areas. However, the top 10 states account for 83% of the total gross loan portfolio. The highest loan allocation is in Tamil Nadu. Loan portfolios have declined in Assam and West Bengal. Darbhanga, Naded, and Sitamarhi have been the best performers in the loan portfolio while Jalpaiguri, Koch Bihar, and Kollam have been the worst performers.