According to Acuite Ratings & Research, pure-play microfinance lenders in India will need to raise fresh capital in FY25 to sustain their growth momentum. Acuite projects the country s microfinance portfolio to reach Rs 4 lakh crore by March 2024. The non-banking finance company-microfinance institutions (NBFC-MFIs) experienced a compounded annual growth rate of 24.6% in FY21-23 and increased their market share to 39.7%.
The incident has also brought back the focus on the perils of multiple lending as the couple had taken loans from several lenders. Rekha Malik (54) of Bengal s Bardhaman district had outstanding loans amounting to Rs 1.23 lakh from as many as four institutional lenders including small finance banks, according to credit bureau report. Her husband, Hemanta Malik, aged 65, was the nominee in three of these loans.
The Deputy Governor said MFIs should focus on understanding the needs of customers first and offer them adequate level of support through appropriate financial products.
Read more about 30-day overdues in microfinance loans may double to reach 14-16%: Crisil on Business Standard. Collection efficiency of MFIs likely to drop to 75-80% in May, from 90-95% in March, creating asset quality pressures