Sa-Dhan- the Bharat Microfinance Report 2016
According to an annual report by Sa-Dhan- the
Bharat Microfinance Report 2016, the self-regulatory body for MFIs,
microfinance institutions (MFIs) have seen their business grow faster in urban
India than in rural in last one year.
Highlights of the report:
- In 2016, total loan amount
disbursed increased by Rs.13,433 crore over 2015, there is a growth of 23%
where amount increased in rural areas by 14% and in urban areas by 27%.
- 94% of the loans disbursed in
2015-16 were used for income-generating purposes, up from 80% in the
previous year.
- However, the loans are being put
to increasingly productive uses with a higher proportion of them going
towards income generation than before.
- In 2011, RBI (Reserve Bank of
India) regulation stipulated that a minimum of 70% of the MFI loans are to
be deployed for income generating activities. Analysis of the loan
portfolio held by reporting MFIs for 2014-15 and 2015-16 shows that the
proportion of income generation loan to non income generation loan is
94:06.
- Within the income-generating loans, the largest proportion—39%—went to the animal husbandry sector, followed by 29% to the trading & small business category. Agriculture received 15% of the loans.
