Micro-finance firms’ association MicroFinance Institutions Network (MFIN) Saturday said there has been an increase of 23 percent in micro-credit borrowers.
The loans from these companies rose by 33 percent during the October-December period last year compared to the corresponding period in 2013-14, the MFIN added.
During this time frame, micro-finance institutions (MFIs) provided micro-credit to over 28.7 million clients nationally as the aggregate gross loan portfolio (GLP) of the loan providers increased by 51 percent at Rs.314.5 billion.
The GLP too saw a uniform rise across the country with south and east India each accounting for 29 percent of the total GLP while north and west India contributed 21 percent each.
“What we are witnessing is the sustained revival of the micro-finance industry – which augurs well for the national financial inclusion agenda. Given the current trend lines, I am confident that the industry will grow by over 40 percent in GLP terms this fiscal,” the association’s CEO Alok Prasad said in a statement.
The self regulatory body said MFIs now cover 32 states and union territories and are receiving extensive funding.
“Funding to MFIs for October-December grew by 162 percent compared with the same time period in 2013-14,” the statement said.
During this time frame, the small credit companies were able to issue life insurance policies to over 30.3 million people worth a total Rs.592.5 billion.
The association has expressed optimism about the Prime Minister’s Jan Dhan Yojna Scheme aimed to financially empower the weaker sections of society through banking and insurance to drive MFI growth further.