micro finance loan Industry data shows that during the second quarter of the current financial year, the country grew by about 11 per cent to Rs 71,916 crore. Microfinance loans worth Rs 64,899 crore were disbursed during the same period a year ago.

In terms of volumes, a total of 1.81 crore loans were disbursed during Q2 FY2022-23, as against 1.85 crore loans in Q2 FY2021-22, as per the latest report Microfinance Institute Network (MFIN).

According to the MFIN Micrometre Q2 FY2022-23 report, the country’s microfinance loan portfolio stood at over Rs 3 lakh crore at the end of September 2022, serving 6.2 crore unique borrowers with 12 crore loan accounts.

“overall micro finance industry Currently the total gross loan portfolio is (glp3,00,974 crore as on September 30, 2022…a growth of 23.5 per cent year-on-year as compared to Rs 2,43,737 crore as on September 30, 2021,” the report said. Of the total micro loans outstanding, The largest share of 37.7 per cent is held by 13 banks, amounting to Rs 1,13,565 crore.

NBFC-MFIs are the second largest provider of micro-credit with an outstanding loan amount of Rs 1,10,418 crore, which is 36.7 per cent of the total industry portfolio.

The average loan disbursed per account during the quarter stood at Rs 40,571, up nearly 12 per cent over the same quarter of FY11.

among others, small finance Banks (SFBs) have a total loan amount of Rs 50,029 crore, which is a share of 16.6 per cent.

Non-banking finance companies (NBFCs) account for another 7.9 percent and other micro finance institutions (MFIs) account for 1.1 percent of the microfinance sector.

The report states that microfinance active loan accounts grew by 14.2 per cent during the last 12 months to 12 crore by September 30, 2022.

In terms of regional distribution of GLPs, East, Northeast and South account for 63.9 per cent of the total portfolio.

State-wise, Tamil Nadu is the largest state in terms of outstanding portfolio, followed by Bihar and West Bengal,

“In Q2FY23, the microfinance industry touched Rs 3,00,974 crore of outstanding portfolio. NBFC-MFIs have also collectively crossed the Rs 1 lakh crore mark, though banks still hold a majority share in the microfinance market .

Alok Mishra, CEO and Director, MFIN, said, “The industry’s CAGR over the last five years has been 22.2 per cent, despite two years of disruption due to the pandemic.”

The pace of growth is likely to pick up further as projected credit He said the demand is expected to be Rs 17-20 lakh crore by 2025.

Microfinance industry body MFIN is an RBI-recognised self-regulatory organization.