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
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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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