India: Microfinance Collections Pick up in July, Shows Industry Data

Overall collection rate of microfinance institutions (MFIs), which was 35-40 percent in April, improved to 65-70 percent in July, according to the industry data collated by industry body, Microfinance Institutions Network (MFIN).

“Collection has picked-up momentum from June. In August collections are expected to be about 80-85 percent. We also observe regional variance in collection due to impact of COVID-19, economic activities, restriction for movement and misleading propaganda of vested interest groups in few pockets,” MFIN said.

Banks continue to dominate the microfinance sector accounting for 41 percent of the loan share of the industry, MFIN said.