Microfinance Institute Network (MFIN) in conversation with SIDBI To improve the fund, MFIN Chief Executive Alok Mishra said.
Mishra said the condition of small MFIs has not improved much but is now in a better position than they were a year after the pandemic, when they faced severe liquidity crunch.
Sivasubramaniam Raman, Chairman, SIDBI, at an event to unveil the second Microfinance Review of MFIN, said, “We are now poised to assist the sector in the next phase of progress through to the mainstreaming of informal micro-enterprises, which are on the cusp of growth. There will be real engines.” report good.
India Microfinance Equity Fund There was a quasi-equity and credit facility of Rs 300 crore targeted to support small MFIs. SIDBI had promised Rs 200 crore to 66 MFIs by March 2019 and disbursed Rs 144 crore. After that, the fund became largely inactive.
SIDBI’s capital will help them to leverage and sustain.
MFIN took several other initiatives such as the Impetus platform to help small MFIs raise funds.
Last year, reserve bank of india Came up with funding facilities worth Rs 25,000 crore and Rs 16,000 crore to ease the liquidity stress of the sector. While the larger MFIs benefit the most from these, the smaller ones remained mostly liquidity hungry.
The microfinance sector contributes about 2% to the country’s gross value addition and generates employment opportunities for about 1.5 crore people.
As of March 2022, around 200 different entities were active in the microfinance sector. Twelve banks operating in microfinancing through the joint liability group model accounted for 40% of the total micro-credit of Rs 2.85 lakh crore. NBFC-MFIs (84) are the second largest provider of micro-credit with 35.2% of the total industry portfolio, followed by small finance banks (9) with 16.9% share, other non-banks with 6.9% and other MFIs with 1% . ,