Microfinance loans grow 1.18% sequentially in Dec 2020: CRIF

Disbursements are rising but repayments stress remains, says the credit bureau

After witnessing shrinkage for the two consecutive quarters, the Gross Loan Portfolio of microfinance players in India rose sequentially by 1.18 per cent to Rs 2,26,660 crore in December 2020, according to credit bureau CRIF High Mark.

As markets opened up and operations resumed in Q2FY21, disbursements have picked up pace. The digitalisation has gained recognition with more lenders in the customer onboarding stage. The loan portfolio had shrunk from Rs 2,32,200 crore in March to Rs 2,26,600 crore in June 2020 and it declined further to Rs 2,24,000 crore in September 2020.

Coming into the third quarter of current