MICROCAPITAL BRIEF: Outstanding Loan Volume by NGO Microfinance Institutions (MFIs) in India Doubled from 2008 to 2009

According to the Bharat Microfinance Report released by Sa-Dhan, an organization of microfinance institutions in India, the portfolio of NGO microfinance institutions (MFIs) grew 97 percent to INR 351 billion (the equivalent of USD 7.7 billion) in 2009. This growth rate is an increase from the growth rate from 2008, when MFIs’ total outstanding loan portfolio grew 72 percent.In addition to the increases in loan portfolio, the number of clients of Indian microfinance increased 60 percent in 2009 to 86 million customers. This was also an increase from the previous year’s growth rate of 41 percent. 80 percent of these clients are women. The authors of the report also noted an increase in the percentage of borrowers taking loans above INR 10,000 (the equivalent of USD 220) and a decrease in the number of borrowers taking loans below INR 5,000 (the equivalent of USD 110).

About Sa-Dhan

Founded in 1999, Sa-Dhan is an Indian association of finance institutions that aims to build the field of community development finance in India. It aims to help its 223 member institutions serve low-income households in both rural and urban India. Sa-Dhan’s member institutions report a total outstanding loan portfolio of INR 117 billion (the equivalent of USD 2.6 billion) and a client base of 23 million customers.

By Eric McKay, Research Assistant

Bibliography

[1] “The Release of The Bharat Microfinance Report – Quick Data 2009”, Sa-Dhan, http://www.sa-dhan.net/Others%5CQuick%20Report%202009.htm?undefined

Additional Resources

MicroCapital Universe: Sa-Dhan: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Sa-Dhan

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