Track up to 29-day dues in micro-loans to contain slippages: Sidbi

Advises caution amid easing of stress, evident from improved collection efficiency

Lenders need to keep close watch on micro loans with delays upto 29 days to avoid further deterioration in asset quality amid easing of stress.

The Covid-19 pandemic, which broke out in March 2020, has severely impacted the Microfinance sector owing to disruption it caused in supply chain & business operations, especially to the low-income group.

As the collection efficiency of the industry improved, the active-loan delinquency buckets are showing improvement in March 2021 compared to December 2020, according to Sidbi.

The 90-day-plus delinquency levels which increased sharply to 4.96 per cent in December 2020 have also moderated to 4.12 per cent in