NBFC MFI’s

TOP 10 NBFC-MFI
MFI Loan amount disbursed (in
crores)
BFIL 18,472
Satin 4,772
Credit Access Grameen Limited 5,266
Spandana 3,858
Muthoot Microfin 3,036
Asirvad 2,877
Arohan 2,569
Annapurna 2,091
Fusion 1,728
Sonata 1,354
Top 10 Small & medium scale MFI’s
Top 10 Small & medium scale Loan Amount Disbursed (in
MFI’s Crores)
Saija 375
Chaitanya 358
Midland 336
Margdarshak 308
Namra 291
Adhikar 278
Jagaran 261
Sambandh 235
Pahal 226
Svasti 223
 MFI IN INDIA
 Mainly most of the MFI’s are based in Maharashtra , UP , MP ,
Orissa , Chhattisgarh , Jharkhand , WB and Bihar as these states
are having a large portion of population which lives in rural areas
and are economically weaker. They do not have access to basic
banking facilities so for financial loans they can’t turn up to the
banks.
 Maharashtra and Bihar having the highest no. of MFI’s (27 MFI’s) .
 Bihar , Karnataka , UP , Orissa and Maharashtra are the top states
in terms of amount disbursed in F.Y 2017-18, these 5 states
contributed 53% of total disbursement of FY 17-18 by MFI’s
 MF IN UP & BIHAR
 Uttar Pradesh has 29.4% of its population (5.9 crore) living below the
poverty line and 77% of its total population living in rural areas , UP
comprises about 35 districts which are classified under the poorest
districts in the country.
 Similarly in Bihar, 33.74% of the population is below the poverty line
and 88% of the total population lives in rural areas according to the
2011 census. Majority of the population in both states is based in
rural areas.
 Degrading social development parameters in terms of literacy,
gender empowerment, etc. Further factors like presence of high
density of tribal populations, lack of technology based resources
have proved to be highly detrimental for the overall socio-economic
development.
 MF IN UP & BIHAR
 Concentration of economic activity in these 2 states is also lower
compared to the national average
 UP has only 16083 bank branches out of a total of 1.2lakh bank
branches nationally, which is even lower in Bihar counting to only
4860 branches. Penetration of the existing institutions is further
hindered by factors like low levels of literacy, lack of awareness,
inefficient governance, etc.
 It is therefore important to recognize the role of Microfinance
Institutions (MFIs) in providing financial services to the unbanked
population
 MF IN UP & BIHAR
 The no. of MFI’s present currently in both states are still less as
compared to the population of both states which is enormous and
MFI’s currently present are not able to cover the whole population of
these states.
 Bihar has 27 MFI’s and UP has only 18 MFI’s according to the Mfin
annual publication 2017.
 UP and Bihar are ideal for MFI’s as basic banking facilities are still not
available in many villages across these states even after various
efforts of the government and there are many districts in these
states which the present number of MFI’s aren’t able to cover.
.
 MFI PRODUCT ANALYSIS
 MFI’s currently are providing loan products of amount starting from
Rs. 1500 to Rs 60000.
 The interest rate being charged by MFI’s is between 18% to 24.7%
with most of the MFI’s charging between 22% to 24.5%.
 MFI’s are mainly having two types of loan product one is Income
generation loan which is in range of Rs. 5000 to Rs 60000 and another
is product loan which is in the range of Rs 1500 – Rs 10000.
 Income generation loan is given by MFI’s for generation of income by
agricultural activities ( crop cultivation , purchase of livestock ,
purchase of agricultural equipment ), to local shop owners , kirana
store owners and small business and others.
 MFI PRODUCT ANALYSIS
 IGL loan is also being given to Women’s in villages so that they are
able to generate their own income and help themselves and their
families. This loan is generally being given in Groups ( self help group ,
Joint liability group ) by most of the MFI’s .
 Another type of loan is product loan which is being given by many
MFI’s is for purchase of products like water purifier , solar cooker ,
mobile phone etc . The tenure for this product is between 6 months
to 2 years.
 A new loan product which is being given by a few MFI’s is loan for
toilet construction and sanitation and the loan amount is between Rs
10000 to Rs 15000.
 MFI PRODUCT ANALYSIS
 A few MFI’s are also having a loan product for emergency
which is given to client in case of an emergency and ranges
in between Rs 4000 – Rs 8000. The tenure for this product is
between 6 months to 1 year.
 The loan tenure for MFI products is between 6 months to 3 years
depending on loan amount and loan product and according to RBI
rules.
 The repayment modes are weekly , bi weekly and monthly.
 In first loan cycle most of the MFI’s are giving loan upto Rs. 30000
and more than Rs30000 in subsequent loan cycles.