MUMBAI, May 8, 2019: Equifax, a global data, analytics, and technology company, and Small Industries Development Bank of India (SIDBI), collaborated to launch “Microfinance Plus” – a newsletter to track the lending trends in the microfinance sector. The first edition of the newsletter reported that NBFC-MFIs continue to maintain their market dominance with the market share of 38 percent in Q3-FY19. Gross loan portfolio (GLP) for the industry stood at Rs. 1,57,644 Cr as at end Q3 FY19, registering a Q-o-Q growth of seven percent.
On the occasion of the launch of the report, Shri. Mohammad Mustafa, IAS, Chairman & Managing Director, SIDBI said, “This newsletter is the result of the great synergy between SIDBI and Equifax. The publication will give an opportunity to look into the future prospects apart from being a repository of all that has taken place in the microfinance sector in the recent past. I hope the newsletter will act as an important reference point for the policy makers and practitioners in the microfinance sector and trust that the effort will bring value to the readers.”
“Equifax is the leading Microfinance bureau in the country, and has worked with the MFI industry to help maintain high levels of underwriting standards, said KM Nanaiah, managing director, Equifax Credit Information services Ltd. and Country Leader, Equifax India and MEA. “This collaboration with SIDBI brings a quarterly newsletter to provide insights on trends in the Indian Microﬁnance industry – from disbursements to delinquencies, from top growing states to top loan categories. This data will act as a lighthouse to help the microfinance industry and policymakers navigate through crests and troughs of lending cycle, thus further promoting responsible lending.”
Key newsletter highlights:
- The total number of active loans at end Q3-FY 19 were 8.22 crore showing a growth of 24 percent over the previous financial year
- Average ticket size of bank loan is highest at Rs. 40,434 whereas NBFC-MFIs loan being lowest at Rs.25,891
- 30+ delinquency for NBFCs at 2.5 percent is the highest in the industry in Q3 FY19
The reports also observed an increase in the number of loans disbursed is approximately 13 percent from Q3 FY18 to Q3 FY19. 30-40k loan category has witnessed the highest increase from 18 lacs loans disbursed in Q3 FY 18 to 29 lacs loans disbursed in Q3 FY 19, the disbursements have increased by 56 percent on a Q-o-Q basis from Q3 FY 18 to Q3 FY 19.
Microfinance Pulse a joint newsletter by Equifax and SIDBI aims to provide insights on trends in Indian Microfinance industry – from disbursements to delinquencies to top growing states and top loan categories.
Equifax is a global data, analytics and technology company and believes knowledge drives progress. The Company blends unique data, analytics, and technology with a passion for serving customers globally, to create insights that power decisions to move people forward. Headquartered in Atlanta, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe and the Asia Pacific region. It is a member of Standard & Poor's (S&P) 500® Index, and its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. Equifax employs approximately 11,000 employees worldwide. For more information, visit Equifax.com and follow the company's news on Twitter and LinkedIn.
Small Industries Development Bank of India (SIDBI), established under an Act of the Indian Parliament in 1990, acts as the Principal Financial Institution for Promotion, Financing and Development of the Micro, Small, and Medium Enterprises (MSME) sector. Over the years, through its various financial and development measures, the Bank has touched the lives of people across various strata of the society and impacted enterprises over the entire MSME spectrum.
In the context of the changing MSME lending landscape, the role of SIDBI has been realigned through adoption of SIDBI Vision 2.0. The vision 2.0 envisages an integrated credit and development support role of the Bank by being a Thought Leader, adopting a credit-plus approach, creating a multiplier effect and serving as an aggregator, in the MSME space.
In line with Vision 2.0, during the year, the business strategies have been reoriented, along with putting in place strategic business initiatives & product/operational improvements, various structural initiatives have been embarked upon and the digital drive has been invigorated.
FOR MORE INFORMATION-
Nalini Sinha Sukriti Kumar
Equifax India Genesis BCW
Nalini.Sinha@equifax.com Phone: +91 9833252547