India is the world’s largest microfinance industry: M-CRIL

India is the world's largest microfinance industry: M-CRIL

Tuesday, November 23, 2010, 22:07Latest News1 comment


Microfinance Focus, November 22, 2010: According to the recently released M-CRIL Microfinance Review, India now has the largest microfinance industry in the world with the phenomenal growth of 62% per annum in terms of numbers of unique clients and 88% per annum in terms of portfolio over the past five years and around 27 million borrower accounts. Micro Credit Rating International (M-CRIL) is a leading rating and advisory agency. It has been publishing Microfinance Reviews since 2000.

The high growth rate of microfinance has been fuelled by commercial bank funding which inherently gravitates towards for-profit institutional structures. Thus, there is a continued India-wide trend towards the transformation of MFIs into for-profit non-bank finance companies (NBFCs) so that over 50% of the 66 MFIs in the M-CRIL analysis now consist of such institutions. 

At the regional level, the South continues to dominate the sector in concentration of numbers of MFIs.  However, there are some MFIs which now have multistate operations and cannot be clearly categorized as working in a particular region.  Such MFIs have been grouped as All India for the purpose of analysis.  The rush to be regulated (as NBFCs) along with the push for growth has become the dominant characteristic of Indian microfinance claims the report.

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