Millions of defaults threaten microfinance's future in Covid-hit India

Although the pandemic isn't the first crisis for the country's microfinance industry, it could be its biggest

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.
 

The 33-year-old mother of two, who’d never missed a payment since she started borrowing three years earlier, is now living off the vegetables and grains she grows on a plot of land outside the home she shares with her husband and his parents. With the whole family