MICROCAPITAL BRIEF: India: Microfinance Industry Predicts $30b in Loan Portfolio and 110m Clients By 2014

In a report from Intellecap, a social sector advisory firm, it is predicted that the Indian microfinance industry will achieve a portfolio of 110 million borrowers and INR 135,000 crore (USD 30 billion) by 2014.

Between 2004 and 2009 the Indian microfinance industry has experienced rapid growth rates, boasting annual average size portfolios increases of 107 percent and client increases of 91 percent. The report claims the predicted growth will come from microfinance development in underserved regions of the country, in conjunction with increased access to capital.

“Hedge funds, high net worth individuals and blue chip private equity players have entered the market amongst others, and public sector banks have increased their exposure contributing a fourth of the debt capital needs of the sector,” the authors add.

About Intellecap:

Intellecap is a social-sector advisory firm that aims to provide market-based solutions to enhance the business practices of social enterprises. Its services include microfinance development, technology solutions, investment banking and business consulting. It currently operates in both India and the US. Financial information is unavailable for Intellecap.

By Matthew Fox, Research Assistant

Additional Resources:

[1] Original article: “Microfinance Industry Eyes 11 Crore Borrowers by 2014,” June 13, 2010:http://www.mydigitalfc.com/news/microfinance-industry-eyes-11-crore-borrowers-2014-827

[2] MicroCaptial Universe: Intellecap:https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Intellecap

[3] MicroCapital.org STORY:https://www.microcapital.org/microcapitalorg-story-is-the-microfinance-sector-losing-its-appeal-to-investors-as-a-result-of-high-valuations/

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