Led by NBFC-MFIs, microfinance loans grow 43% to Rs 1.7 trn in FY19: MFIN

NBFC-MFIs, which hold the largest share in micro-credit space, were able to shake off impact of tight liquidity in Q3

The microfinance loan book of Indian lenders, including Microfinance institutions, rose by 43 per cent to Rs 1.66 trillion in 12 months to December 2018.

The finance companies (NBFCs-MFI) hawking micro loans expanded their asset growth by 43.9 per cent to Rs 60,631 crore at end of December 2018, from Rs 42,137 crore at end of December 2017. These companies were able to shed the effect of a liquidity crunch in the third quarter, according to Micro Finance Institution Network (MFIN).

Harsh Shrivastava, CEO, MFIN said the microfinance industry continued to show healthy portfolio quality in the third quarter ended December 2018