Loan disbursed by non-banking monetary organizations-microfinance institutions (NBFC-MFIs) fell to Rs 10,617 crore in the second quarter of this fiscal, registering a de-development of 42.8% year-on-year from Rs 18,565 crore in the similar period final fiscal, microfinance market association MFIN mentioned on Tuesday.
The micro loan disbursed in the course of the second quarter, having said that, saw more than 18-fold quarter-on-quarter boost from Rs 570 crore. In the very first quarter, only two lakh loans had been disbursed, whilst the quantity of loans disbursed rose to 32 lakh in the second quarter.
“Average loan amount disbursed per account during Q2FY2021 was Rs 32,912, which is an increase of around 20% in comparison to corresponding quarter of the last financial year,” MFIN mentioned in its 35th challenge of the ‘Micrometer’, which offers an overview of the country’s microfinance market.
Gross loan portfolio (GLP) of NBFC-MFIs grew more than 12% year-on-year to Rs 71,147 crore as on September 30, 2020 as compared to Rs 63,275 crore a year ago. The GLP of Rs 71,147 crore integrated owned portfolio of Rs 57,270 crore and managed portfolio of Rs 13,878 crore. The GLP, having said that, contracted from Rs 71,724 crore as on June 30, 2020.
NBFC-MFIs received a total of Rs 9,854 crore in debt funding in Q2FY21, which is 4% larger than Q2FY20 and 65% more as compared to Q1FY21. Total equity grew by 20% as compared to Q2FY20 and was at Rs 17,178 crore.
Alok Misra, CEO, MFIN, mentioned, “July to September 2020 quarter has witnessed gradual and steady progress in microfinance loan disbursement as also on repayment, compared to earlier April to June 2020 quarter. The full impact is still not seen as September was the first month post-moratorium. This rides on regulatory policy initiatives announced by the RBI and the government of India and ably implemented by microfinance lenders as also the resilience of borrowers.
Our members too have supported microloan borrowers during this unprecedented challenging period, helping them restart credit cycle and rebuild their livelihoods.”
Though the disbursements had been choosing up and so was the recovery, there had been pockets of Covid tension, Misra mentioned, adding the sector necessary continued policy assistance on pricing regulations post revision of base price for the third quarter and resolution of Covid impacted loan accounts to continue to serve BOP clientele.