Due to the rapidly growing Indian economy, the microfinance sector has experienced a promising expansion in recent years. The sector has been crucial in helping low-income people and different micro, small, and medium-sized companies (MSMEs) obtain formal credit, boosting their GDP contribution to India as a whole. Additionally, in the upcoming years, microfinance in India will have a huge impact. Microfinance is extremely well-liked in our country due to its key characteristics, which include lending to low-income people and providing loans without any form of collateral.
The microfinance sector, which saw loan disbursals increase by nearly 80% during the first quarter of FY-23 on a year-over-year basis, is likely to see a further increase in disbursements during the remaining months of this fiscal year, supported by pent-up demand, an expansion of the branch network, and favourable policy.
When compared to the same period the previous year, the microfinance industry’s loan disbursals increased by 80% to $45,830 crore during Q1 FY-23. In the 42nd issue of the Micrometer report for the quarter ending June 30, 2022, Microfinance Institutions Network (MFIN) reported that the number of loans disbursed increased to 116 lakhs during the quarter from 71 lakhs during the same period last year, indicating continued growth of the microfinance portfolio.
The microfinance market was worth USD 2120.0 million in 2022, and it is anticipated to grow at a CAGR of 13.99% from that year through 2027, totalling USD 4652.0 million.
The research combines extensive quantitative information with in-depth qualitative analysis. It covers everything from a macro overview of the overall market size, industrial chain, and market dynamics to micro details of segment markets by type, application, and region. As a result, it offers a comprehensive picture of the Microfinance market and a deep understanding of all of its key facets.
The research also introduces participants in the market from the standpoint of market share, concentration ratio, etc., so that readers may have a better understanding of their competitors and the competitive climate in general, it covers the top firms in detail for the competitive landscape. Additionally, the effects of COVID-19, rising market trends, mergers and acquisitions, and regional conflicts will all be taken into account.
In a nutshell, everyone involved in the industry, an investor, researcher, consultant, business strategist, or someone who plans to enter the market in any way should read this study.
The Indian microfinance industry’s broad range of services contributes to its expansion:
Despite all obstacles, the microfinance industry has numerous participants and established microlending structures. Given that a sizable section of its population has poor incomes, India offers the microfinance business enormous growth potential.
.The reality is that approximately 67% of Indians who live in rural regions now have better
access to microcredit thanks to government initiatives and approved banking institutions.
.However, a small number of regions in the nation are home to a large number of MFIs.
.Approximately 34% of the districts in our nation that offer microloans contribute to 80% national portfolio.This shows that there may be room for microfinance to spread to different other regions of the nation.
.In addition, a sizeable portion of Indians still lack access to legal credit and rely on unofficial sources like family or moneylenders to meet their financial demands. This demonstrates how crucial microlending is for promoting economic inclusion and overall industry growth.
.But in order to take advantage of this development opportunity, the sector has to recognise and analyse new market demands and then respond to them with appropriate efforts for growth that are optimised.
.Microcredits need to enable borrowers to change their trajectory from one of job seekers to one of the job creators.There will be a growing need to leverage capital as the industry develops through better regulation and investment flows in order to build a successful and long-lasting environment for borrowers.
(The writer, Prem Singh Hooda, is the MD at Prayatna Microfinance)
Appreciate the recommendation. Will try it out.
… [Trackback]
[…] Here you will find 39319 more Info on that Topic: pynr.in/money-matters-how-was-the-year-2022-for-the-microfinance-sector-and-what-can-we-expect-in-2023/ […]
… [Trackback]
[…] There you can find 84649 additional Info to that Topic: pynr.in/money-matters-how-was-the-year-2022-for-the-microfinance-sector-and-what-can-we-expect-in-2023/ […]