Industry Overview – Indian Microfinance Industry
The Indian microfinance industry consists of Non-Banking Financial Companies - Micro Finance Institutions (NBFC-MFIs), Banks, Small Finance Banks, NBFCs and non-profit MFIs.
As of March 31, 2021, the industry’s total gross loan portfolio was ₹ 2,47,839 crores, with 5.99 crore unique borrowers.
The NBFC-MFI segment accounted for 35% of the microfinance lending, with Banks at 40%, SFBs at 16%, and NBFCs/Others at 9%.
Microfinance operation in India spread across 641 districts of 37 states and union territories.
MFIs are serving their borrowers through 22 lakhs centre.
West Bengal, Tamil Nadu, Bihar, Karnataka, and Uttar Pradesh are amongst the top states in terms of loan portfolio outstanding and active loan account.
North 24 Parganas, Murshidabad, Jalpaiguri, Nadia, South 24 Parganas, Bardhaman, Hooghly, Howrah, Cooch Behar, and Mysore are amongst the top districts in terms of loan portfolio outstanding.
Average ticket size of the sector is ₹39,600/-.
MFI Sector employs around 1.23 lakhs people.
Interest income typically constitutes over 90% of the total income of MFIs.