Second COVID Wave Batters Microfinance, Lenders Positive on Outlook in India
The gross loan portfolio of microfinance companies in India fell in the first quarter of FY22 as demand for credit dropped due to restrictions imposed during the second COVID-19 wave.
The loan portfolio declined 7 percent to Rs 2,36,100 crore in the April-June quarter from Rs 2,53,800 crore in the preceding quarter and dropped 0.86 percent from Rs 2,34,100 crore a year earlier, according to a report by CRIF High Mark, an Indian credit bureau.
Microfinance companies offer financial services to small businesses and individuals without access to conventional banking.
Photo courtesy of Shubhangee Vyas.