search
cross icons

KARACHI: The disbursement of microfinance loans increased almost 20 per cent on a quarterly basis to Rs134.6 billion in October-December, latest data released by the Pakistan Microfinance Network shows.

 

The surge in disbursements was coupled with a 7.4pc quarterly increase in the gross loan portfolio, which amounted to Rs392.6bn. On an annual basis, outstanding microfinance loans rose 21pc in 2021, data showed.

“One of the major reasons for the quarterly rise in loan disbursements was the fact that wheat sowing takes place in the last three months of every year,” said Ghazanfar Azzam, CEO of Mobilink Microfinance Bank, which is the largest provider of microloans in terms of the number of borrowers with a market share of 24.9pc.

Moreover, growth in the microfinance industry hit a snag when the pandemic hit the economy, he said. “Covid-19 led to a slowdown in disbursements. The pandemic is receding now and the industry is just getting back to its usual pace of growth,” he added.

The microfinance industry disbursed 4.7 million loans in the three-month period under review, up 5.2pc from the preceding quarter.

There were 8.1m active borrowers at the end of October-December, 0.9pc lower than the number of borrowers at the end of the preceding quarter.

The average loan size in October-December was Rs28,292, up 13.9pc from Rs24,846 in the preceding quarter, on the back of a surge in disbursements.

Mr Azzam said one of the two reasons for such a sharp rise in the average loan size is inflation. Secondly, the State Bank of Pakistan has now allowed microfinance banks to disburse small business loans of up to Rs3m. This has resulted in an increase in the average loan size during the last quarter of 2021, he said.

“Our bank has started financing tractors and other commercial vehicles, which helped elevate the loan size of the entire microfinance industry,” said the CEO of Mobilink Microfinance Bank, which is the third largest provider of microcredit in terms of the gross loan portfolio with a market share of 9.8pc.

He added that microfinance banks have now entered the housing space under the prime minister’s scheme for subsidised housing — a move that’s going to further increase the average loan size.

Explore More

Mobilink Bank carries out nationwide…

Micro-banking for a sustainable future

When it comes to financial inclusion,…

Climate change spurs microfinance…

Mobilink Bank’s “Change to…

Mobilink Bank Launches “Center of…

Mobilink Bank Registers a Solid Start to…

MMBL, Avanza Solutions join hands to…

MMBL Partners With Quwat To Offer…

MMBL Partners with Quwat, Industrus to…

ILO recognizes MMBL’s WIN program as a…

MMBL’s 9-Point Agenda 2.0 Delivers…

Deploying the Power of Fintech

Quarterly Financial Statements September…

MMBL enters into strategic partnership…

Interim Financial Statements June 30,…

MMBL Announces Major Policy Changes to…

MMBL to offer e-health insurance,…

MMBL, CBA join hands to enhance access…

MMBL Launches Programs to Empower Women…

MMBL Wins ‘Most Innovative…

MMBL launches Business Plus Current…

MMBL, CBA join hands to enhance access…

Rana Tanveer’s Incredible Journey To…

MMBL signs an agreement with IBP to…

MMBL signs MoU on Term Life Insurance…

RBI Asia Trailblazer Awards: MMBL wins…

MMBL, CIP Collaborate To Promote…

MMBL partners with foodpanda Home Chefs

University of Balochistan: MMBL…

MMBL, Digit 4G Enter Into Strategic…

MMBL secures ‘positive outlook’…

MMBL signs partnership agreement with…

MMBL celebrating ‘10 years of…

MMBL, BaKhabarKissan join hands to offer…

MMBL, IWCCI To Promote Access To Digital…

MMBL, AdalFi partner to offer traders,…

MMBL’s Commercial Vehicle Loan:…

TMUC organizes Career Discovery & Job…

Samiha Ali Zahid Chief People Officer,…

MMBL honored with the ‘D&I Leader’…

Financing the Dreams of Millions of SME…

MMBL’s Financial Inclusion, Women…

Pak bank’s financial inclusion, women…

EFP organizes women empowerment seminar…

MMBL Takes Digital Banking a step with…

MMBL becomes first microfinance…

MMBL’s celebration of a milestone year…

OICCI acknowledges members for…

Mobilink Microfinance Bank Ltd. Bags…

MMBL’s Ambition for Driving Digital…

MMBL's female borrowers

MMBL wins Retail Banker International…

Mobilink Bank puts forth Policy…

MMBL signs MoU with NOWPDP

A Strategic Collaboration With Universal…

MMBL joins forces with FBTL to provide…

MMBL’s Profit Before Tax in H1 2020

Mobilink Microfinance Bank launches…

MMBL partners with IBP to launch branch…

ACCA recognises MMBL as approved…

MMBL, Teamup sign MoU to promote…

MMBL, LCCI sign agreement

MMBL secures membership of OICCI

Mobilink Microfinance Bank recognized…

Mobilink Microfinance Bank Posts Strong…

MMBL secures ‘Positive Outlook’…

TPL Trakker partners with Mobilink…

Mobilink Microfinance Bank builds…

Mobilink Microfinance Bank launches…

VEON’s Mobilink Microfinance Bank wins…

MMBL’s Humqadam Scoops ‘D&I…

MMBL expands its network – Grows to…

MMBL Partners with Opportunity…

PACRA Maintains ‘Stable Outlook’ for…