April 3

What Helped CreditAccess Grameen Maintain ‘Good’ Liquidity Position Amid Lockdown

By Chandrakant Mahapatra

CreditAccess Grameen Ltd. said its liquidity position was “quite good” even as lenders stop loan collections amid a national lockdown to combat the coronavirus pandemic.

“More than 46 percent of our borrowings are two-to-six-year term loans, so repayment stress is quite low,” Udaya Kumar Hebbar, managing director and chief executive officer at the microfinance lender, told BloombergQuint in an interview.

Microfinance Institutions Network—an association for the microfinance sector in India—has asked all the members to inform customers that collections will resume only after the lockdown ends and that they should keep the instalment money with them. Hebbar, however, said the economic impact of the lockdown would not be too harsh as local consumption remained healthy for rural microfinance firms like CreditAccess Grameen.

Photo courtesy of Satish Krishnamurthy.

Source: Bloomberg Quint (link opens in a new window)

Coronavirus, Finance