Portfolio outstanding of the Microfinance sector at Rs 442.7k crore as of March 24 rose 26.8 per cent in FY’ 2023-24 according to a report by credit bureau CRIF Highmark.
Despite regulatory restrictions , personal loans grew the second fastest among retail assets which rose 38.3 percent. While property loans rose the fastest at 41.4 per cent
The share of personal loans in the retail MFI exposure was 29 per cent in FY’2023-24 compared to 19 per cent in FY’2022-23. while that of property loans ws 2.4 per cent, almost double the level of 1.6 per cent the previous year.
NBFC MFIs continued to dominate the market with portfolio share of 39.2 per cent, followed by Banks at 33.2 percent, Small Finance Banks at 16.9 per cent, NBFCs at 10.2 per cent as of March 24, CRIF said.
On a year-on-year basis, NBFCs microfinance portfolio rose 45.8 per cent, the banks’ portfolio rose 25.9 percent, for NBFC MFIs the growth was 23.5 per cent, and 27 per cent for small finance banks.
In terms of size, Loans in ticket size between Rs 30,000 and Rs 50,000 continues to dominate the portfolio with share of 46.9% as of March 2024. Nearly 26 percent of the originations in terms of value were from those who were new to credit, CRIF Highmark said.
