Have been regularly attending MFI webinars ,few insights in last few days which I could gather :
1)All MFI is facing collection issue because of lockdown ,including Arman
2)After 20th April ,depending on green zone(Arman has 76% in green zone as of now ) ,MFI will be able to collect but because of moratorium maximum of the buyers will not pay now
3)While MFI will be extending Moratorium they may not get the same from banks or NBFC (it will be at the discretion of banks /NBFC)
4)Hence liquidity will be am issue in short term for those who havent got the required liquidity (Arman has 6 months of operating expenses and few months of debt obligations )
5)While MFI faces huge difficulty now but they are amongst the few sectors which recovers fast (demon was a good example )
6)There will be credit loss in this crisis for all ,including Arman -this will get reflected may be after 6-9 months
7)RBI TLTRO scheme ensures it is passed by banks to MFI in investment grade .We need to see how fast this is passed effectively .Arman is amongst the few small sized NBFC’s who is in investment grade .Better and efficient way may be borrowing from NABARD /SIDBI