Microfinance disbursements slowed in Q1 FY23 after new regulations: MFIN

Lenders needed time to make policy changes after norms were updated in March 2022, says industry group

microfinance institutions

Despite the slowdown in disbursements in Q1FY23, MFIs continued to expand their network and added employees on the roll during the quarter

Abhijit Lele Mumbai
Microfinance loan disbursement by non-banking companies and micro finance institutions (NBFC-MFIs) slowed down sequentially to Rs 22,745 crore in April-June 2022 from Rs 30,731 crore in January-March 2022 as lenders adapted to new regulatory norms.

Yet, NBFC-MFIs were able to grow their gross loan portfolio (GLP) by 2.01 per cent quarter-on-quarter (QoQ) to Rs 98,508 crore at end of June 2022. Their loan book expanded by 30.1 per cent year-on-year (YoY) from Rs 75,677 crore, according to data from Microfinance Institutions Network (MFIN).

Micro loan disbursement by NBFC-MFIs stood at Rs 6,279 crore in April-June 2022 (Q1 FY22). This was

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First Published: Sep 22 2022 | 6:15 PM IST

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