Our members too have supported microloan borrowers during this unprecedented challenging period, helping them restart credit cycle and rebuild their livelihoods.”
Loan disbursed by non-banking financial companies-microfinance institutions (NBFC-MFIs) fell to Rs 10,617 crore in the second quarter of this fiscal, registering a de-growth of 42.8% year-on-year from Rs 18,565 crore in the same period last fiscal, microfinance industry association MFIN said on Tuesday.
The micro loan disbursed during the second quarter, however, saw over 18-fold quarter-on-quarter increase from Rs 570 crore. In the first quarter, only two lakh loans were disbursed, while the number of loans disbursed rose to 32 lakh in the second quarter.
“Average loan amount disbursed per account during Q2FY2021 was Rs 32,912, which is an increase of around 20% in comparison to corresponding quarter of the last financial year,” MFIN said in its 35th issue of the ‘Micrometer’, which provides an overview of the country’s microfinance industry.
Gross loan portfolio (GLP) of NBFC-MFIs grew over 12% year-on-year to Rs 71,147 crore as on September 30, 2020 as compared to Rs 63,275 crore a year ago. The GLP of Rs 71,147 crore included owned portfolio of Rs 57,270 crore and managed portfolio of Rs 13,878 crore. The GLP, however, contracted from Rs 71,724 crore as on June 30, 2020.
NBFC-MFIs received a total of Rs 9,854 crore in debt funding in Q2FY21, which is 4% higher than Q2FY20 and 65% more as compared to Q1FY21. Total equity grew by 20% as compared to Q2FY20 and was at Rs 17,178 crore.
Alok Misra, CEO, MFIN, said, “July to September 2020 quarter has witnessed gradual and steady progress in microfinance loan disbursement as also on repayment, compared to earlier April to June 2020 quarter. The full impact is still not seen as September was the first month post-moratorium. This rides on regulatory policy initiatives announced by the RBI and the government of India and ably implemented by microfinance lenders as also the resilience of borrowers.
Our members too have supported microloan borrowers during this unprecedented challenging period, helping them restart credit cycle and rebuild their livelihoods.”
Though the disbursements were picking up and so was the recovery, there were pockets of Covid stress, Misra said, adding the sector needed continued policy support on pricing regulations post revision of base rate for the third quarter and resolution of Covid impacted loan accounts to continue to serve BOP clients.
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