How millions of defaults threaten the future of microfinance in India
How millions of defaults threaten the future of microfinance in India
With India’s economy set to contract the most since 1952, many borrowers — most of whom are small traders & daily wage labourers — are becoming trapped in never-ending debt cycles.
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Mumbai/New Delhi: 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.