Credit costs of MFIS may surge up to 10% by Mar ’22: Ind-ra

With a sharp drop in collections during the second wave of Covid-19, the credit costs of micro-finance institutions (MFIS) in India may surge to 6-10 per cent by March 2022 from an earlier estimate of 3-6 per cent, according to India Ratings (Ind-ra). However, most of the large MFIS would be able to absorb this through their income statement, with minimal impact on equity, said Ind-ra.