Microfinance institutions (MFIs), which are playing a key role in providing credit to the poor, particularly women SHGs, have increased their clients from 4.2 million to 9.9 million in the last decade (2013-2022), and registered a growth of 132%.
According to the report, ‘Microfinance in Karnataka’ commissioned by Association of Karnataka Microfinance Institutions (AKMI), while MFIs loans have created a positive impact in the lives of more than 60% of clients in Karnataka, close to 90% of borrowers of MFIs utilised loans for income generating activities. Also, borrowers preferred loans from MFIs over nationalised banks owing to easy documentation.
The report which was released here on Tuesday noted that the average loan per client in Karnataka was ₹44,036 against ₹40,547 in Tamil Nadu. The All-India average was ₹42,838 per client.
