MFIN: Micro-Credit Disbursements Drop 35.8% to Rs 22,091 Crore in Q3FY25.

Economy Business | Dated: 28 Feb 2025

In February 2025, Microfinance Institution Network (MFIN) India, based in Gurgaon (Haryana), an umbrella body for Microfinance Institutions (MFIs), released the 52nd edition of its Mirometer for Q3FY24-25 report.

🎯 Key Highlights:

  • - The report highlighted that microfinance loan disbursements decreased by 35.8% to Rs 22,091 crore in the 3rd Quarter (Q3: October-December) of Financial Year 2024-25 (FY25) compared to the same period last year.
  • - The report further revealed a 3.5% Year-on-Year (Y-o-Y) decline in the total loan portfolio, which reached Rs 3.85 trillion in Q3FY25.
  • - Additionally, the number of new loans disbursed showed a negative growth of 29.02%.

💡 Other Important Facts:

  • (i) As of December 31, 2024, the Assets Under Management (AUM) of MFIs stood at Rs 1,42,695 crore, reflecting a decrease of 0.1% compared to Q3FY24 and 6.5% on a sequential basis.
  • (ii) According to the report, the average loan amount disbursed per account during Q3FY25 was Rs 51,691 crore, marking a 15.2% increase from the same quarter of FY24.
  • (iii) The report also revealed that the Portfolio At Risk (PAR), defined as unpaid loans over 30 days, decreased to 8.8% as of December 31, 2024, compared to 3.5% during the same period last year.

📚 Test Your Knowledge:

Recently, by what percentage did micro-credit disbursements drop to Rs 22,091 crore in Q3FY25?

Correct Answer: 35.8%

🚀 Quick Recap:

About Microfinance Institution Network (MFIN) India

  • CEO & Director: Dr. Alok Misra
  • Headquarters: Gurugram