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Amid COVID, microfinance industry grows 16% in 2020

From the overall microfinance industry’s gross loan portfolio, 55 percent was contributed by five states with West Bengal having the highest outstanding portfolio
Amid COVID, microfinance industry grows 16% in 2020
Amid COVID, microfinance industry grows 16% in 2020

The eighth edition of “Microfinance Plus”, a quarterly publication by Small Industries Development Bank of India (SIDBI) and Equifax revealed growth in the portfolio outstanding by 16 percent year on year, indicating the resilience of the Indian microfinance industry during the COVID-19 pandemic. From the overall industry’s gross loan portfolio, 55 percent was contributed by five states with West Bengal having the highest outstanding portfolio.

Key highlights of microfinance study

  • Microfinance industry portfolio showed outstanding growth of 16 percent from Jan’ 20 to Dec’ 20
  • Banks witnessed the highest Y-o-Y growth of of 23 percent across all the lenders from Jan’20 to Dec’ 20
  • Disbursement by amount grew by 84 percent and number of loans disbursed grew by 97 percent in OND’20 quarter as compared to previous quarter
  • 0K-10K ticket size loans have registered highest Y-o-Y growth of 240 percent from OND’19 to OND’20 quarters
  • Industry 1+ delinquencies show a peak in Dec’ 20 at 21 percent
  • Top five states (West Bengal, Tamil Nadu, Bihar, Karnataka & Maharashtra) contribute 55 percent to pan India portfolio
  • West Bengal is contributing highest at 15 percent towards total portfolio outstanding

On the launch, KM Nanaiah, Managing Director, Equifax Credit Information services and Country Leader, Equifax India and MEA said, “The eighth edition of Microfinance Pulse report provides cutting edge analysis to address key questions of practitioners and policymakers. In a COVID-19 tough year, the microfinance industry stood its ground, by growing the portfolio by 16 percent YoY. Banks led this growth story with the highest growth across lenders.”
 
Microfinance Pulse aims to provide insights on trends in the Indian microfinance industry – from disbursements to delinquencies to top growing states and top loan categories. The report is being published in 12 vernacular languages in addition to English.

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