Global survey data shows a sharp increase in nonperforming and restructured microfinance loans during the early months of the COVID-19 pandemic, but strong capitalization among most MFIs mitigates the risk of insolvency.
How are microfinance institutions responding to COVID-19? To what extent are they offering leniency to clients? Have they been forced to lay off staff or close branches? CGAP's pulse survey of microfinance institutions sheds light on these questions.
How is COVID-19 impacting the portfolios of microfinance institutions (MFIs)? Are MFIs facing a liquidity crisis? Is the solvency of institutions at risk? CGAP's global, monthly survey began two weeks ago, and answers are beginning to emerge.
One company offers microcredit. The other offers PAYGo financing for smartphones, tablets and solar home systems. In what may be a template for other microfinance institutions, they are helping each other to reach more low-income customers.