Coronavirus Impact: MFIs Feel There Will Be Pent-Up Demand for Loans After Lockdown Ends

Source: Money Control

While the coronavirus crisis disrupting operations in every sector, the microfinance institutions (MFIs) have also been badly hit. But they are hopeful of bouncing back as the stakeholders feel there will be pent-up demand for loans after the lockdown restrictions are lifted.

"India is largely driven by entrepreneurship. A large section of our population is self-employed, driving their businesses, for their livelihoods. We expect a bounce back since this self-employed low-income segment is perennially credit-starved. Funds will always pursue quality credit. Whenever required, and as per their credit records, MFIs would provide financial help to help borrowers get back on track," said Harsh Shrivastava, CEO, Microfinance Institutions Network (MFIN).