MICROCAPITAL BRIEF: Microlenders Affiliated with India’s Microfinance Institutions Network Boost Loan Disbursals by 22%, Gross Loan Portfolio by 9.2% from Previous Quarter

According to the Microfinance Institutions Network (MFIN), an association of Indian microfinance institutions (MFIs), 41 of its 47 member MFIs disbursed loans totaling INR 61.9 billion (USD 1.1 billion) in the October-December quarter of 2012, an increase of approximately 22 percent from the INR 50.9 billion (USD 926 million) during the previous quarter. 70 percent of these loans were issued outside the Indian state of Andhra Pradesh, a region that has seen a reduction in the size of the sector since a 2010 state law was passed increasing restrictions on loan recovery and disbursement.

As of December 31, 2012, the gross loan portfolio (GLP) excluding Andhra Pradesh was reportedly INR 101 billion (USD 1.8 billion), approximately 14 percent greater than the INR 88.7 billion (USD 1.6 billion) of the preceding quarter. The GLP of MFIs in Andhra Pradesh also increased, approximately 4.2 percent from INR 82.2 to 85.6 billion (USD 1.5 to 1.6 billion), resulting in a countrywide GLP increase of 9.2 percent.

By Nicole Boyd, Research Associate

About Microfinance Institutions Network (MFIN)
The Microfinance Institutions Network (MFIN) is a trade association of 47 Indian microlenders that operate as non-banking finance companies. MFIN is supported by the Omidyar Network, a US-based philanthropic investment firm, and the International Finance Corporation (IFC), a member of the World Bank Group.

Sources and Additional Resources:

The Hindu Business Line. “Microfinance loan disbursals rise 22% in October-December,” http://www.thehindubusinessline.com/industry-and-economy/banking/microfinance-loan-disbursals-rise-22-in-octoberdecember/article4432459.ece?ref=wl_industry-and-economy

MicroCapital. February 5, 2013, “MICROCAPITAL BRIEF: Indian Microlender SKS Microfinance Reports Profits After Seven Quarters of Losses,” https://www.microcapital.org/microcapital-brief-indian-microlender-sks-microfinance-reports-profits-after-seven-quarters-of-losses/

MicroCapital. October 3, 2012, “MICROFINANCE PUBLICATION ROUND-UP: Microfinance and Witch Hunts in India; Poverty Scorecard for Myanmar; Andhra Pradesh Clients Post-Microfinance Crisis,” https://www.microcapital.org/microfinance-publication-round-up-microfinance-and-witch-hunts-in-india-poverty-scorecard-for-myanmar-andhra-pradesh-clients-post-microfinance-crisis/

MicroCapital. November 15, 2010, “MICROCAPITAL BRIEF: India’s Microfinance Industry on Brink of ‘Collapse’ Due to Credit Freeze in State of Andhra Pradesh,” https://www.microcapital.org/microcapital-brief-indias-microfinance-industry-on-brink-of-collapse-due-to-credit-freeze-in-state-of-andhra-pradesh/

MicroCapital Universe Profile: Microfinance Institutions Network (MFIN) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Institutions+Network+%28MFIN%29

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