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 highlights of the 14th edition:

Portfolio outstanding of microfinance industry as on 30th June 2022 is Rs.266,541 crore with 1,041 lakh active loans and 5 crore active unique borrowers. Banks contributes highest towards portfolio outstanding. Banks, NBFC-MFIs & SFBs contributes 90% towards portfolio outstanding and 89% towards disbursement amount in AMJ’ 22 quarter. Microfinance industry grew by 20% from June 2021 to June 2022 and witnessed Q-o-Q growth of 1% from March 2022 to June 2022. NBFCs witnessed highest Y-o-Y growth of 56% from June 2021 to June 2022.

Disbursements by value witnessed annual growth of 116% and 92% by volume from AMJ’21 to AMJ’22. NBFCs witnessed highest growth of 265% in terms of disbursement amount and 225% in terms of loan disbursal from AMJ’ 21 to AMJ’ 22. Highest number of loans are issued under 30k-40k ticket size category and it witnessed annual growth of 153% from AMJ’ 21 to AMJ’ 22.

All the delinquency buckets have declined in June 2022 compared to June 2021. Except 60-89 days past due category all other delinquency buckets have declined in June 2022 from March 2022.
Portfolio outstanding as on 30th June 2022 for Aspirational Districts is Rs.37,124 crore and it grew by 29% from June 2021 to June 2022. Loans worth Rs.41,025 crore were disbursed in Aspirational Districts from July 2021 to June 2022.

NBFCs have highest number of borrowers in 25k-50k outstanding category followed by SFBs. Except for Not Profit MFIs, more than 50% of the borrowers are falling in >=25k outstanding category.

In this edition we have introduced Indexed MFI Enquiry Volume analysis. After second wave of COVID-19 the microfinance industry has showed an improvement in new loan enquiries. Between March'21 and June'22 the month of September 2021 had the highest number of enquiries. More number of enquiries were done in June 2022 compared to June 2021.