With rural places also impacted by the second wave of the Covid-19 pandemic, microfinance establishments (MFI) have been witnessing a drop in collections and count on further uncertainty but are hopeful that the scenario may well stabilise by the stop of June.
“The scenario was ordinary at least until the third 7 days of April this year in contrast to April and May possibly 2020 when there was a finish lockdown and no collections. Collections have now slowed down and they are only up to twenty for each cent to 30 for each cent of ordinary levels,” claimed P Satish, Govt Director of MFI association SaDhan.
He pointed out that the lockdown this year has also led to some constraints in mobility when meeting clients is generally challenging thanks to nearby containment zones. A substantial amount of MFI staff also currently being impacted by Covid. Even more, rural places far