Top 10 states have 83% penetration of outstanding loan portfolio: Equifax-SIDBI

The report, while noting that 40% of NBFC-MFIs have the highest number of unique live customers, adds that average ticket size per loan has increased by 13%Y-o-Y to reach Rs 31,623.

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The microfinance industry has a presence in 615 districts in India whose 210 districts constitute 80% of the portfolio outstanding.
Surpassing banking sector yet again, and registering a growth of 40% in FY18, country’s Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs), having a market share of 37% continue to maintain their market dominance in the lending space, says the latest SIDBI-Equifax newsletter.

Mentioning that the growth in overall volume in loan disbursement by MFIs grew by 20% in FY18, the newsletter reports that in terms of overall industry’s gross loan portfolio, 83% was contributed by top 10 states, with West Bengal and Tamil Nadu topping the list -- contributing 35% of the top 10 states. Amongst the top states, West Bengal, Tami Nadu, Bihar, and Karnataka are having a portfolio of more than 15,000 crore, indicating a highly concentrated market.

Further, 25% of portfolio outstanding was comprised by top 30 districts out of 619 and Puducherry was found to have the highest concentration of active MFI borrowers by the population at 14%, followed by Tripura at 11% and Tamil Nadu at 9%, adds the report.


The report, while noting that 40% of NBFC-MFIs have the highest number of unique live customers, adds that average ticket size per loan has increased by 13% Year-on-Year (Y-o-Y) to reach Rs 31,623.

Commenting on the latest findings, Mohammad Mustafa, IAS, Chairman & Managing Director, SIDBI said, in a statement, “The second volume of Microfinance Pulse is a continuation of strong collaboration between SIDBI and Equifax to bring the latest Microfinance sector trends to industry and policymakers alike. The growth in the overall microfinance portfolio is encouraging.”

The SIDBI-Equifax quarterly study revealed 20% growth of volume in loan disbursements. Highest number of loans as of FY19 are disbursed in Rs 20,000-Rs 30,000 ticket size category followed by Rs 30,000-Rs 40,000 ticket size category whereas ticket size category of Rs 50,000-Rs 60,000 saw the highest increase by 67% from FY18 to FY19.

As of March 31, 2019, MFIs provide microcredit to over 6.40 crores clients. The microfinance industry has a presence in 615 districts in India whose 210 districts constitute 80% of the portfolio outstanding. As per industry body Microfinance Institutions Network (MFIN), the regional distribution of portfolio (GLP) of NBFC-MFI currently stands as: East and North-East (37%), South (25 %), North (14%), West (15%) and Central India (9%).
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