Most microfinance institutions resume operations in green zones

Most microfinance institutions resumed operations on Monday in green zones across the country in coordination with local authorities, officials said. The lenders are adhering to all health and safety precautions related to COVID-19, the Microfinance Institutions Network (MFIN), which has 88 lenders associated with it, said in a statement.

The lenders have also agreed to extend the three-month moratorium provided by the RBI on term loans to borrowers, the statement said, adding, collections will be made only from customers who have opted out of it. Demand for micro-finance will increase once MFIs start full-fledged operations after the lockdown is lifted, the MFIN said.