Key facts
- Tamil Nadu's microfinance outstanding portfolio decreased by 2.3% quarter-on-quarter to Rs 38,900 crore by end-March.
- Karnataka recorded 1.1% growth in its microfinance outstanding portfolio during the same period.
- Karnataka had Rs 28,600 crore in outstanding microfinance loans at the end of March.
Microfinance growth in South India has been dampened by regional curbs, with both Tamil Nadu and Karnataka showing slower expansion in their outstanding loan portfolios. Data from credit information company Crif High Mark revealed that Tamil Nadu experienced a 2.3% quarter-on-quarter squeeze, bringing its total microfinance outstanding portfolio to Rs 38,900 crore at the end of March. Meanwhile, Karnataka recorded a more modest growth of 1.1% during the same period, with its outstanding microfinance loans amounting to Rs 28,600 crore at the close of March.