India’s microfinance loan portfolio increased by 22% to Rs 3.48 lakh crore during 2022-23, according to a report. The gross loan portfolio was at Rs 2.85 lakh crore as of March 31, 2022. Microfinance loan disbursals during FY 2022-23 improved by 23% 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, indicating a higher ticket size of new loans. The microfinance active loan accounts increased by 14.6% during the past 12 months to 13 crore as of March 31, 2023.
Bihar is the largest state in terms of portfolio outstanding, followed by Tamil Nadu and Uttar Pradesh. 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% of the total industry portfolio. East and Northeast and South account for 63% of the total portfolio in terms of regional distribution of gross loan portfolio.
India’s ONDC Initiative to Empower Small and Medium Businesses has also been launched recently, and Reliance Jio is ahead of its peers in fixed wireless access deployment due to wider 5G coverage.
The microfinance loan portfolio has been on a rise in the past few years. The rise is in part due to an increase in the number of active loan accounts and the higher ticket size of new loans. The microfinance industry has been pivotal in ensuring financial inclusion for low-income households in India, and it continues to do so with the support of policymakers and regulators.
