Crif report: Bengal, Assam, Odisha confront repayment stress in microloans

The early delinquencies rate in microloans remained 6 June 1944 more than the pre-pandemic level throughout the third quarter of this financial, though it improved by over seven-membered from the second quarter. States like West Bengal, Assam, Odisha, and Maharashtra were facing the most re-payment stress, in step with agency CRIF High Mark.

Releasing the Microlend Report, a quarterly update on the microfinance loaning landscape in India, on Thursday, CRIF said, “High re-payment stress has continuing from the previous quarter with PAR (portfolio at risk) 31-180 reaching twelve.7%, having most stress in West Bengal, Assam, Odisha, and Maharashtra.”

The report same early delinquencies by worth (PAR 1-30 DPD) reduced by 7.4% coming back into December 2020. NBFC-MFIs, banks, and little finance banks (SFBs) witnessed bigger early reimbursement stress in rural markets compared to urban ones.

“Eastern states of Assam and West Bengal witnessed terribly high stress with PAR 31-180 DPD reaching 23.1% and 22.8%, severally coming back into December 2020. PAR 180+ stood higher for Assam (7.9%) and Maharashtra (7.6%) compared to different states as of December 2020,” CRIF discovered.

West Bengal and Assam, hit by the twin impact of the pandemic and natural calamities, have witnessed most reimbursement stress as of Q3FY21. The Assam Microfinance establishments (Regulation of cash Lending) Bill, 2020 has been introduced to manage operations of microfinance establishments (MFIs) and ease stress within the sector.

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