March 26

Covid-19 attack limits MFI outreach

By Atmadip Ray

Kolkata | New Delhi: Microfinance firms are slowing down new loan disbursements in the country’s rural heartland as a direct fallout of the coronavirus outbreak. They are also facing non-repayment from borrowers whose earnings may take a hit as the country goes into lockdown to combat the spread of coronavirus.

Anticipating liquidity tightness, Microfinance Institutions Network (MFIN), the lobby group for the NBFC-MFIs, has already sought the regulator’s intervention in getting fund support from banks. MFIN has also requested for regulatory forbearance in asset classification and provisioning rules. Housing finance companies (HFCs) are also looking for 180 days to 270 days moratorium to deal with the situation.

Source: Economic Times (link opens in a new window)

Coronavirus, Finance