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MFIs disbursements decline by 88% to Rs 6,046 cr in Q1 FY21: Report

Loan disbursement by microfinance sector declined by 88 per cent to Rs 6,046 crore in the April-June quarter due to the coronavirus-induced lockdown, according to CRIF MicroLend quarterly report.

Topics
microfinance industry | Loan disbursals

Press Trust of India  |  Mumbai 

Tamil Nadu has borrowed close to a massive Rs 40,000 crore in four-and-a-half months, compared to Rs 17,000 crore last year

Loan disbursement by microfinance sector declined by 88 per cent to Rs 6,046 crore in the April-June quarter due to the coronavirus-induced lockdown, according to CRIF MicroLend quarterly report.

In the same quarter of the previous fiscal, MFIs disbursement stood at Rs 52,556 crore.

In the quarter, only 21 lakh loans were disbursed as against 189 lakh in the fourth quarter of FY2020 and 157 lakh in the first quarter of FY2020.

Disbursements of small ticket loans (less than Rs 20,000) saw an upsurge in April-June 2020 with 60 per cent of the share by volume, as against 15 per cent in the last quarter of 2019-20, the report showed.

Maximum loans of ticket size Rs 15,000-20,000 were disbursed in both rural and urban geographies in Q1 FY2021, as against ticket size Rs 25,000-30,000 in Q4 FY2020.

The gross loan portfolio (GLP) of MFIs stood at Rs 226.6 lakh crore in the first quarter of FY2021, the report showed.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Thu, October 08 2020. 22:20 IST
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