NBFC-MFIs Top Micro-Credit Providers In India, Says Study
NBFC-MFIs emerged as the top micro-credit providers in India, disbursing nearly 40% of the total micro-credit by the end of the 2023-24 fiscal year.
Nearly 40% of micro-credit disbursed by the end of the 2023-24 fiscal was by NBFC-MFIs, and 33% by scheduled banks, according to an industry body report. Microfinance Industry Network, an umbrella body of micro-finance institutions, said NBFC-MFIs are the largest provider of micro-credit in the country.
As of March 31, 2024, the gross loan portfolio of the entities extending micro-credit stood at Rs 4.33 lakh crore.
Small finance banks account for 17% of the overall micro-credit disbursed, followed by NBFCs at nine per cent, the MFIN report said.
Around 4.3 crore clients have loan outstanding from NBFC-MFIs, it said.
The assets under management of the MFIs, as of March 31, 2024, stood at Rs 1,56,884 crore.
In terms of regional distribution of portfolio, the east and the northeast account for 32%, followed by the south at 27%, the north at 16% and the West at 15%.
The average loan amount disbursed per account during the 2023-24 financial year was Rs 45,024, registering a rise of 9.9% over the preceding fiscal, the report said.
During the last fiscal, NBFC-MFIs received debt funding of Rs 89,308 crore, an increase of 29% over the 2022-23 financial year.
