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Loans to bottom of pyramid pick up, but repayments still a concern

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MUMBAI: The microfinance sector is slowly returning to normalcy with a spike in fresh disbursements, but repayments remain a concern with delinquencies on the rise, according to a report by credit bureau Crif Highmark.
With near nil economic activity in the first quarter of the financial year, the sector witnessed a huge decline in fresh disbursements, 88% lower compared to same quarter last year.
In Q2 FY 2020-21, as the lockdown was lifted and slight normalcy resumed in business operations, disbursements in the sector went up swiftly, witnessing a 380% spike (by value) over the first quarter. While Q1′ FY 2020-21 …

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