Microfinance institutions’ delinquency rate down 20% in April-Oct

PTI Updated - January 06, 2014 at 03:52 PM.

Credit information company ECIS today said the delinquency rate of microfinance institutions (MFIs) has declined by 20 per cent between April and October 2013.

“Delinquency rate by the number of accounts that are more than 30 days outstanding has declined 20 per cent from 1 per cent in April to 0.8 per cent in October 2013,” Equifax Credit Information Services (ECIS) said in a report.

Earlier this year, ECIS had reported that delinquency by number of accounts that are more than 30 days due had declined by more than 33 per cent from more than 1.5 per cent in mid-2012 to around 1 per cent in April 2013.

“Seeing the continued decline in delinquency rates gives us confidence that our MFI members are benefitting from ECIS’ credit bureau data. We are working extensively with them to increase the usage of the other solutions we offer from our end-to-end suite of MFI products,” its Managing Director and Chief Executive Sanjay Patel said.

ECIS is a joint venture between Equifax Inc of the US, State Bank of India, Bank of Baroda, Bank of India, Union Bank of India, Kotak Mahindra Prime, Religare Finvest and Sundaram Finance and has over 120 MFIs as its members in the country.

Published on January 6, 2014 10:20