Despite moratorium, rural recoveries on rise for microfinance institutions

Despite moratorium, rural customers of most microfinance institutions (MFIs) are steadily clearing their dues. Most MFIs are expecting more than 50 per cent recovery in the month of June, mostly backed by rural repayments.

Income from harvesting season, along with the essential nature of rural occupations, helped rural borrowers to be more resilient to the economic slowdown due to Covid.

According to MFIs, the recoveries from rural areas in May were higher by 10-20 per cent compared to that in urban areas.

A majority of MFI borrowers have the option to avail moratorium till the end of August.  

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