Indian MFIs Say All Is Now Well in Loan Repayment
While India’s cash-dominated microfinance sector was reeling under stress following the recall of high value currencies, sector leaders such as Ujjivan Financial Services and Bharat Financial Inclusion have come forward to defuse concerns raised by stakeholders.
Ujjivan on Monday announced 91% repayment rate in November while Bharat Financial said in a presentation to BSE last week that it had a collection efficiency of 97% with a two-week lag following the government’s suddendemonetisation move.
These lenders have resumed disbursements by recycling cash collected from borrowers as repayments. The government has restricted cash withdrawal from current accounts to Rs 50,000 per week.
Ujjivan disburses about Rs 20 crore per day.