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.. The first edition of the newsletter reported that Non-Banking Financial Company – Microfinance Institutions (NBFC-MFIs) continue to maintain their market dominance with the market share of 38% in third quarter of financial year 2018-19 (Q3-FY19).

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 highlights:

  1. The total number of active loans as at end Q3-FY19 were 8.22 crore showing a growth of 24% over as compared to the previous financial year.
  2. Average ticket size of bank loan is highest at Rs. 40,434 whereas NBFC-MFIs loan being lowest at Rs.25,891.
  3. 30+ delinquency for NBFCs at 2.5% is the highest in the industry in Q3-FY19.
  4. The reports also observed increase in the number of loans disbursed is approximately 13% from Q3-FY18 to Q3 FY19. 30,000-40,000 loan categories have witnessed the highest increase from 18 lakh loans disbursed in Q3-FY18 to 29 lakh loans disbursed in Q3-FY19, the disbursements have increased by 56% on a Q-o-Q basis from Q3-FY18 to Q3-FY19.