The business of Micro Finance Institutions (MFIs) industry has risen from Rs 17,264 crores in March’12 to Rs. 3.93 lakh crore as of November ‘24, M Nagaraju, Secretary, DFS, Ministry of Finance was apprised by the industry representatives during a meeting in New Delhi.
As per the MFI state holders, the industry has grown more than 2,176 per cent over 12 years. The Ministry of Finance stated in a release DFS Secretary chaired a meeting with major Micro Finance Institutions. The meeting was also attended by senior officials of DFS including industry bodies namely MFIN and Sa-Dhan.
The engagement with MFIs was designed to foster an open exchange of ideas aimed at elevating the MFI sector. The emphasis was on reaching low-income households in villages and uplifting their lives by providing them with hassle-free financial assistance if needed. Participating MFIs apprised that the business of the MFI industry has risen from Rs. 17,264 crores in March’12 to Rs. 3.93 lakh crore as of November ‘24.
The industry operates in over 723 districts including 111 aspirational districts across 28 states and 8 Union Territories. They also cater to the financial needs of almost 8 crore borrowers. MFIs contribute 2.03 per cent of the gross value added to GDP and support 1.3 crore jobs.
During the meeting, challenges and issues being faced by MFIs were also discussed. It was informed that MFIs are facing difficulties in raising low-cost long-term funds. The quality of the MFI portfolio is being impacted on account of various issues including a reduction in lending to the sector. (ANI)
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Indian Micro Finance sector grows by over 2,100% in 12 years – Daily News
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