Microfinance industry sees 29% rise in loan disbursements in Q1

MFIN report also said that the industry has experienced a growth of 89 per cent since first quarter of the FY 2015-16

Microfinance industry has witnessed 29 per cent growth in loan disbursements during the first quarter of the financial year (FY) 2016-17, a report says.

The Microfinance Institutions Network's (MFIN) report also said that the microfinance industry has experienced a growth of 89 per cent since first quarter of the FY 2015-16.

MFIN is the first Self-Regulatory Organisation in the financial services sector recognized by the Reserve Bank of India and regulates non-banking financial companies (NBFC) and MFIs to ensure responsible lending and client protection.

"The aggregate Gross Loan Portfolio (GLP) of MFIs stood at Rs 60,165 crore in first quarter of the FY 2016-17 as compared to Rs 31,869 crore in first quarter of the FY 2015-16," it said.

South India leads the way with 35 per cent share in GLP followed by North India at 25 per cent and West India at 24 per cent and East India contributing 16 per cent.

According to the report, the industry witnessed a year-on-year increase of 48 per cent in client base where MFIs provided micro credit to 3.58 crore clients.

"With the increase in number of branches, MFIs have been able to increase their outreach thus expanding their beneficiary base. Total number of loans disbursed has also seen an increase of 29 per cent which significantly contributed to the expansion of the sector," said Ratna Vishwanathan, chief executive officer, MFIN.

The employee base has grown 43 per cent and the NBFC-MFIs now employ 98,287 employees.

The branch network has increased by 28 per cent in last one year and now stands at 10,458, MFIN said.