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Microfinance sector’s portfolio delinquent by over 90 days has increased
January 09, 2023
“Overall delinquency in the microfinance segment, measured in terms of 90+ days past due (loans overdue by more than 90 days) has increased, led by banks,” the report said. Being delinquent in banking is referred to a situation wherein the borrower is overdue on a loan payment by a certain number of days.
The overall delinquency in the microfinance portfolio by over 90 days as of September 2022 involving all lenders was around 14 per cent, up from around 12 per cent in March 2022 even as it was similar to September 2021 level, data showed. Microfinance loans are typically extended to small business owners or entrepreneurs and low-income households who don’t have access to traditional financial resources.
“It is not going up but PAR 90 of September 2022 is at a similar level to September 2021 mainly because disbursements during the second half of the calendar year 2021 were still impacted due to the second wave of Covid. However, the comforting measure is that disbursements after April 2022 have been performing well and we should see this stress again going down,” Alok Misra, CEO and Director, MFIN India told FE Aspire.
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