Analysis: Microcredit Lenders in Bangladesh Hit Hard by COVID-19
According to industry insiders, small microcredit lenders are barely surviving, but big creditors have somehow managed to weather the storm for now
Suffering from low demand for loans and the inability of many borrowers to pay instalments, the microcredit sector has been hit hard by Covid-19.
Microcredit is engaged in providing small-business loans, savings accounts, and non-financial support to help boost financial inclusion and entrepreneurship within lower-income communities, especially in rural areas.
But most microcredit borrowers are small traders, street hawkers, and daily wage labourers — the same group of people who are most vulnerable to the economic shocks of the pandemic.
According to industry insiders, small microcredit lenders are barely surviving, but big creditors have somehow managed to weather the storm for now.
Photo courtesy of Meena Kadri.
Source: DhakaTribune (link opens in a new window)
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