Microfinance loan portfolio rises by 22% to Rs 3.48 lakh crore in FY'23

Microfinance

Microfinance loan portfolio increased by 22 per cent to Rs 3.48 lakh crore during 2022-23, according to a report.

Gross loan portfolio stood at Rs 2.85 lakh crore as on March 31, 2022.

Microfinance loan disbursals during FY 2022-23 improved by 23 per cent to Rs 2,96,423 crores compared to Rs 2,39,433 crore in the previous financial year.

About 7.17 crore loans were disbursed during FY 22-23 as against 6.30 crore in the previous year indicating higher ticket size of new loans, microfinance institutions network (MFIN), the microfinance industry association and an RBI-recognized self-regulatory organization. The microfinance active loan accounts increased by 14.6 per cent during the past 12 months to 13 crore as on March 31, 2023.

In terms of regional distribution of gross loan portfolio, East & Northeast and South account for 63 per cent of the total portfolio.

Bihar is the largest state in terms of portfolio outstanding followed by Tamil Nadu and Uttar Pradesh, it said.

It further said 82 NBFC-MFIs are the largest provider of micro-credit with a loan amount outstanding of Rs 1,38,310 crore, accounting for 39.7 per cent to total industry portfolio.