Microfinance loans grow 24%

The loan portfolio of micro-finance institutions (MFI) increased 24% year-on-year (YoY) to Rs 2.75 trillion by end of this June from Rs 2.22 trillion a year ago. Sequentially, the loan book expanded from Rs 2.62 trillion at end of March 2022 (Q4FY22), according to Sa-Dhan, the self-regulatory organisation (SRO) for microfinance. Fund flow to the sector has improved but some smaller MFIs still find it difficult to access finance from banks. The organisation is working towards removing this gap, Sa-Dhan said in a statement. Barring banks, the portfolio of other microfinance lenders recorded double digit growth. Non-banking finance companies working as MFIs recorded growth of 35.18%. The small Finance Banks clocked 27.66% YoY growth. Also Read Residential prices rise by 5%, says reportPune: Six town planning scheme see light of day