 "microfinance institutions")
Securitisation of loans extended by microfinance entities (MFIs) more than doubled year-on-year to Rs 3,500 crore in the June 2022 quarter of the current financial year, as investors reposed confidence on improved recoveries and adequate credit enhancements.
According to rating agency Icra, the securitisation or sale of existing micro-finance loans by issuing pass-through certificates (PTC) and direct assignment (DA) stood at Rs 1,460 crore in Q1FY22. This review covers transactions by non-banking finance companies working as microfinance institutions (MFIs).
There was a healthy bounce back during the second half of FY2022 and the trend has continued in Q1FY23. Micro loan
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