Structural Interventions

Microfinance Pulse

Small Industries Development Bank of India (SIDBI) and Equifax, collaborated to launch a first-of its-kind newsletter “Microfinance Pulse” to track the trends in the microfinance sector viz. disbursements delinquencies, state-wise distribution, top loan categories etc.

This data will act as a lighthouse helping the microfinance industry and policymakers navigate through crests and troughs of lending cycle, so as to ultimately facilitate responsible lending.

Key newsletter (June 2019 edition) highlights:

  1. As of March 31, 2019, micro credit was extended to over 6.40 crore poor clients, mostly women.
  2. The microfinance industry portfolio in FY19 recorded a growth of 40% over FY18.
  3. Non-Banking Financial Company – Microfinance Institutions (NBFC-MFIs) account for 37% of total portfolio, having the largest share of portfolio in Micro-credit followed by Banks (34%).
  4. NBFC-MFIs have 2.55 crore unique live customers, which is the highest in the industry. Further, loan disbursement by volume saw 20% growth from FY18 to FY19, while an average ticket size per loan has increased by 13% Year-on-Year (Y-o-Y) to reach Rs. 31,623.
  5. NBFC-MFIs witnessed the highest growth in portfolio outstanding at 49% across lender categories.
  6. 25% of portfolio outstanding was contributed by top 30 districts out of a total of 619 districts with presence of microfinance.