Microcredit borrowers get loan moratorium until Dec 31

The Microcredit Regulatory Authority (MRA) has further extended the loan payment facilities for the microcredit borrowers until December 31, 2020.

This is the third time the regulator extended the facility due to the second wave of coronavirus that wreaked havoc in all sectors, including small businesses.

All other conditions for the facility will remain unchanged, that is, the loan will not be classified by the lenders and there will not be any impact on credit.

The facility was extended considering the second wave of Covid-19 that hit most sectors in the country and microfinance institutions failed to carry on normal activities, according to a circular issued by the MRA on Wednesday.

No loan can be identified as the default until December 31, once the microcredit borrowers fail to repay the loan instalments, it said.

The MRA asked micro finance institutions to refrain from classifying any loans if borrowers failed to repay their instalments as per schedules.

Earlier, the MRA announced the first loan rescheduling facility until June 30 and, then, extended until September 30.