NBFC micro credit biz sees near-term stress, shows MFIN data

Finance company executives said the second wave had an adverse effect on the incomes of borrowers

The share of loans with over 30-day dues in micro credit by finance companies shot up 15.7 per cent in June 2021 from 4.5 per cent a year ago, showing adverse impact of Covid-19 on borrowers. Sequentially also, there was a rise from 9.2 per cent in March 2021, according to Microfinance Institutions Network (MFIN) data.

The review of performance by MFIN showed there was a marginal rise in over 90-day dues to 2.81 per cent in June 2021 from 2.3 per cent in June 2020, a quarter marked by the first wave of the pandemic.

However, sequentially, there was improvement from