Microfin industry to double in next 5 years

New Delhi: Indian microfinance industry is expected to double its lending business to poor and marginal sections of the society in the next years if the growth momentum continues, Nobel Peace Prize winner and founder of Grameen Bank Muhammad Yunus said.

With size, there would also be some challenges which the industry should be geared up to handle, he said.

According to Sa-Dhan's Bharat Microfinance Report–2019 released by Yunus here, the Indian microfinance industry clocked a growth of over 40 per cent, with a gross loan portfolio of Rs 178,552 crore in gross loan outstanding at the end of March 2019.

The industry has collectively managed a portfolio worth of nearly Rs 35,435 crore as of March 2019 whereas it was Rs 21,080 crore in 2018.

However, Jammu and Kashmir remains the most underserved region, followed by Andhra Pradesh and Telangana.