Indian Microfinance Market: Some Snippets

• The present outreach of all microfinance initiatives in India in terms of cumulative clientele (households) is estimated at 28 million (2.8 Crore) households.
o Cumulative reach of MFIs is close to 12.5 million (1.25 Crore) poor households;
o The NABARD microfinance programme is estimated to reach 16 million (1.6 Crore) households in March 2004;
• Cumulative disbursement under all microfinance programs is estimated at around Rs5000 Crores, (disbursement under NABARD’s programme alone was over Rs 3,500 Crore (on March 2004);
• Annual outstanding of all microfinance initiatives in India is estimated as being around Rs1240 Crores for the financial year ending March, 2003;
• Vyas committee’s interim report finds that the number of new SHGs formed has been growing by nearly 20% annually;
• If a compounded annual growth rate of 20% over the next five years is achieved, the cumulative clientele that has actually accessed financial services through MFIs would exceed 30 million (3 Crore) households by the year 2009
• If another 30 million (3 Crore) retail clients (households) can be reached by the banking network, a significant proportion of the poor population would have access to institutional finance.