Arohan Annual Report FY 20-21

India’s microfinance industry steadily regained momentum during the second half of the year. This recovery has been in line with the resilience shown by the industry in the past, and is a true testimony of the industry’s ability to successfully respond to external shocks time and again. The overall microfinance industry’s Gross Loan Portfolio (only for JLG loans) in India grew to INR 2,59,377 Cr (1) as of March 31, 2021 (for the loans originated after February 2017) despite muted disbursements across the industry in the first half of FY 2020-21. The disbursements in the last quarter picked up in line with levels in FY 2019-20, in terms of number of loan accounts disbursed as well as total loan amount disbursed. Overall, industry Assets Under Management (AUM) grew by 11.90% (1) in the same period (based on the loans originated after February 2017). Collections of microfinance institutions, which had plunged to near zero in April 2020 because of the nationwide lockdown, rebounded to 70-75% in July and August and further improved to 90%+ in latter half of the year as per CRISIL estimates. Industry Disbursement trends and AUM trend Quarter-on-Quarter from March 2020 to March 2021. Source: MFIN Micrometer Issue 37, Disbursement figures represent the total disbursement in the quarter ending the month and GLP figures represent the GLP as on last day of the month. Annual Report | 2020-2021 34