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Microfinance Industry Network (MFIN), an umbrella body of micro-finance institutions, has said that nearly 40 per cent of micro-credit disbursed by the end of the 2023-24 fiscal was by non-banking financial companies-micro finance institutions (NBFC-MFIs), and 33 per cent by scheduled banks. It said NBFC-MFIs are the largest provider of micro-credit in the country. 

As of March 31, 2024, the gross loan portfolio of the entities extending micro-credit stood at Rs 4.33 lakh crore. Small finance banks account for 17 per cent of the overall micro-credit disbursed, followed by NBFCs at nine per cent. Around 4.3 crore clients have loan outstanding from NBFC-MFIs. The assets under management (AUM) of the MFIs, as of March 31, 2024, stood at Rs 1,56,884 crore.

In terms of regional distribution of portfolio, the east and the northeast account for 32 per cent, followed by the south at 27 per cent, the north at 16 per cent and the West at 15 per cent. The average loan amount disbursed per account during the 2023-24 financial year was Rs 45,024, registering a rise of 9.9 per cent over the preceding fiscal. During FY24, NBFC-MFIs received debt funding of Rs 89,308 crore, an increase of 29 per cent over the 2022-23 financial year.