Loans disbursed by microfinance institutions grew 52 per cent in the October-December 2013 period, says a report on the performance of 43 microfinance companies spread across India.

The report, released by industry body Micro Finance Institutions Network (MFIN), claims it covers 85 per cent of the total loan portfolio of the sector. This report does not include micro-loans given out to self-help groups.

The growth in total loan disbursements to ₹9,281 crore ( during October-December) from ₹6,120 crore a year earlier is indicative of the robust demand for these small-value loans across the country despite their relatively higher pricing.

Over the previous quarter, the amount of loans disbursed by these 43 companies grew 21 per cent.

A microfinance company, typically, disburses low-value loans at 24-26 per cent interest compared with 10-12 per cent charged by banks.

Loan-seekers

The total number of people seeking micro-loans increased to about 2.65 crore till December from about 2.29 crore, a year ago. The average loan amount disbursed by these companies was below ₹15,000 per account.

As of December 31, 2013, the total gross loan portfolio of these 43 microfinance companies was about ₹24,000 crore.

State-wise share Among the States, Maharashtra and Madhya Pradesh have the highest number of MFIs at 21. Uttarakhand’s gross loan portfolio grew 37 per cent during the quarter, the highest for any State.

Tamil Nadu and Andhra Pradesh have the highest amount of loan outstanding. However, in Andhra Pradesh very little of those loans are being serviced by the customers as the State continues to be troubled by the hangover of the 2010 microfinance crisis.

Andhra Pradesh, West Bengal, Tamil Nadu, Karnataka and Maharashtra accounted for 62 per cent of the total loan portfolio as of December 31, 2013.

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