MFIs see 50% recovery in June as rural borrowers avoid using moratorium

Despite the 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 the harvesting season, along with the essential nature of rural occupations, has helped rural borrowers become more resilient to the Covid-19-induced economic slowdown.

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.  

CreditAccess Grameen,