The Covid-19 pandemic caused a transitory disruption in the microfinance sector in the last six months, primarily driven by the nationwide lockdown, followed by intermittent restrictions imposed across different States. Udaya Kumar Hebbar, Managing Director and CEO, CreditAccess Grameen Limited (CAGL), shares with BusinessLine on the way forward for the sector and the company. Excerpts:

After Covid-19 unlock, what is the road ahead for microfinance?

Currently, the sector has a gross loan portfolio of around ₹2,31,788 crore and 5.89 lakh active customers as on March 31. The future growth potential of the sector remains intact, as there is still a large untapped opportunity to be addressed to meet the credit requirements of the unbanked, unserved and under-served people. Rural India, which accounts for 65 per cent of India’s population and 47 per cent of India’s GDP, only accounts for 10 per cent of the overall banking credit. Further,

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