Financiers across the spectrum are struggling to trace low-ticket borrowers, about a fifth of their customers, through virtual means.

All major state-owned and private banks have stopped lending to non-banking financial companies (NBFCs) due to concerns about their financial health.

Small non-bank lenders plan to come together and sell bonds that make the cut for bank financing.

The lockdown has brought the collection operations of microfinance institutions (MFIs) to a halt, as about 95 percent of the loan repayments are still done through cash.

This will help firms below investment grade access the liquidity tap since such joint effort would typically enhance their credit rating.

MFIs are hopeful of bouncing back as the stakeholders feel there will be pent-up demand for loans after the lockdown restrictions are lifted.

Both Sa-dhan, India's largest microfinance industry body with 212 members, and Microfinance Institutions Network (MFIN), the industry grouping for NBFC-MFIs, have separately urged the prime minister to take action.

MFIs, like other financial institutions, are in a fix over whether they can avail of the moratorium benefit on term-loan repayments given to all borrowers

Microfinance industry association Sa-dhan has reached out to Prime Minister Narendra Modi seeking an extension of the loan moratorium benefits to the industry.