Mid-level and Small MFIs are severely affected by the COVID-19 situation which is briefly stated below.

Social Upliftment Society (SUS) along with other MFIs in Bangladesh could not collect loan instalments from their clients during April and May 2020 as the government halted nationwide operations. As a result, we faced cash flow crisis due to halted operations.

But after May 2020, MFIs has started its microfinance program on a limited scale.

As the majority of the MFI borrowers have already become vulnerable due to the pandemic, this has also created a serious threat to the day-to-day activities of the MFIs and also on their sustainability

Further, on the health issue, some MFIs had to close their branches, change the way they work and reduce their physical contact with the program beneficiary groups

The pandemic has affected the workplace and earnings of the borrowers which have seriously weakened their repayment capacity

Loan defaults possibilities have become higher, administrative costs have risen and the MFIs own debt obligations and liquidity have been facing challenges and concerns for the sustainability of their operations.

Most of the mid and small levels NGO-MFIs are already facing hardships and difficulties in paying full salaries to their staff last month