The total gross loan portfolio of microfinance institutions in Karnataka has surged from ₹16,946 crore in March 2019 to ₹42,265 crore in the last financial year that ended March 2024, said Microfinance Industry Network (MFIN), a Self-Regulatory Organisation (SRO) recognised by the RBI.
In Karnataka, microfinance institutions currently serve over 63 lakh unique individual borrowers of microcredit loans, the body said.
At a press conference jointly organised by MFIN and the Association of Karnataka Microfinance Institutions (AKMI) here on Thursday, the office-bearers said that microfinance customers had shown “alacrity in learning about good credit discipline, regular repayment and respect for lending institutions’ advice to borrow within their capacities.”
Rama Kamaraju, Head, State Initiatives, MFIN, said microfinance operations of RBI-regulated entities in Karnataka have traversed a smooth path even at the time of demonetisation and COVID-19. ‘‘Women borrowers from the State have exhibited extraordinary resilience and maintained excellent credit discipline,” he said. Microfinance, he said, dovetailed with various government schemes on the ground.
According to Anand Rao, MD, Chaitanya India Fin Credit, microfinance in Karnataka has a 20-plus year history and the RBI-regulated entities are governed by a strong code of conduct and the challenge the sector faces is from unregulated entities.
Venkatesh N., MD, IIFL Samasta Finance, said: ‘’Regulated microfinance institutions have played a pivotal role in driving women’s empowerment. With this access to the unbanked, we foster entrepreneurial growth and generate local employment.”
Published - January 23, 2025 09:33 pm IST
