Millions of defaults threaten microfinance's future in India7 min read . Updated: 04 Feb 2021, 09:58 AM IST
With default rates across India soaring on the mainly ¬unsecured loans, the virus is undoing the business models of dozens of MFIs as funds dry up
In February 2020, unaware the coronavirus pandemic was about to wipe out her livelihood, Arpita Das borrowed $2,300 to buy materials and equipment for her family fishing business in West Bengal, India. A few weeks later, demand for her prawns collapsed, leaving her unable to make the $180 monthly repayments to two microlenders.
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