Common questions

What is the microfinance rate in India?

What is the microfinance rate in India?

As of June 30, 2021, the microfinance industry served 5.68 crore unique borrowers, through 10.30 crore loan accounts, the report showed. The microfinance active loan accounts decreased by 0.67 per cent during the past 12 months to 10.30 crore as of June 30, 2021, it said.

What was the growth rate of the microfinance industry of India in the financial year 2019?

Impacted by the COVID-19 pandemic, the microfinance industry in India grew at a slower rate of 31% in 2019-20, closing the year with loan portfolio outstanding of over ₹2.36 lakh crore, industry body Sa-dhan said on Monday, adding that it expects growth to further slowdown to 15% in the current year.

How big is the microfinance industry?

The Microfinance market in the U.S. is estimated at US$43 Billion in the year 2020. The country currently accounts for a 26.95% share in the global market. China, the world second largest economy, is forecast to reach an estimated market size of US$89.3 Billion in the year 2027 trailing a CAGR of 18.1% through 2027.

What is the maximum limit of microfinance?

Under extant instructions for NBFC-MFIs, a microfinance borrower is identified by annual household income not exceeding ₹1,25,000 for rural and ₹2,00,000 for urban and semi-urban areas.

Why microfinance interest rates are so high?

The reason why the interest rates are so high is because microfinance institutions borrow from banks with interest rates that range from 12 percent to 15 percent, then spend about 10 percent on high costs, 5 percent to protect against high risk of default, 2 percent to 5 percent for supplemental support products such …

How many microfinance companies are there in India?

3000 microfinance companies
There are a number of microfinance companies in India, which play some pivotal roles to the development of India. India’s microfinance sector is fragmented with more than 3000 microfinance companies (MGIs), NGOs and NGO-MFIs.

Which MFI is best?

Top 10 Microfinance Companies in India

  • Equitas Small Finance. The lender offers small loans between Rs.
  • ESAF Microfinance and Investments (P) Ltd.
  • Fusion Microfinance Pvt Ltd.
  • Annapurna Microfinance Pvt Ltd.
  • Arohan Financial Services Limited.
  • BSS Microfinance Limited.
  • Asirvad Microfinance Limited.
  • Cashpor Micro Credit.

What is the current state of microfinance sector in India?

The microfinance sector is having a healthy growth rate and it is currently a Rs.20,000 Cr. industry. The SHG-Bank Linkage Programme and the Microfinance Institutions put together achieved a growth in their customer base by about 10.8 percent. The combined borrowing customer base increased to 93.9 million from 86.3million in the previous year.

How big is the microfinance industry’s loan portfolio?

According to Sa-Dhan’s ‘Bharat Microfinance Report 2020’, the industry’s loan portfolio outstanding as on March 31, 2020, had stood at Rs 2,36,427 crore. The year-on-year growth of loan outstanding in 2019-20 was 31 per cent, which is substantially lower than the growth of 41 per cent in 2018-19.

How SIDBI is boosting microfinance in India?

INR 10 billion funds have been released by the Small Industries Development Bank of India (SIDBI) to boost the microfinance sector. SIDBI has tied up with non-profit organizations and social ventures to channel funds at below-market rates to facilitate affordable borrowing.

Can microfinance help in the fight against poverty in India?

With financial inclusion emerging as a major policy objective in the country, Microfinance has occupied centre stage as a promising conduit for extending financial services to unbanked sections of population The microfinance sector has emerged as one of the most promising tool for ameliorating poverty in India.