Microfinance Units Urge PM to Extend Loan Moratorium Benefits

Source: The Hindu

Microfinance industry association Sa-dhan has reached out to Prime Minister Narendra Modi seeking an extension of the loan moratorium benefits to the industry.

“Despite Reserve Bank of India’s circular pertaining to a moratorium on retail loans, financial institutions are refraining from extending the same benefits to microfinance institutions,” P. Satish, Executive Director – Sa-Dhan said. He explained that microfinance institutions borrowed from banks and development financial institutions to lend to the end user. While they were providing a moratorium to their customers following the RBI announcement, they still have to repay banks.