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Microfinance Loan Officers Before and During Covid-19: Evidence from India

Author

Listed:
  • Czura, Kristina

    (University of Groningen)

  • Englmaier, Florian

    (LMU Munich)

  • Ho, Hoa

    (LMU Munich)

  • Spantig, Lisa

    (RWTH Aachen University and University of Essex)

Abstract
The Microfinance industry has been severely affected by Covid-19. We provide detailed insights into how loan officers, the key personnel linking the lender to its borrowers, are affected in their performance and adapt their work to the pandemic. We use administrative records of an Indian Microfinance Institution and detailed panel survey data on performance, performed tasks, and work organization to document how the work environment became more challenging during the pandemic. Loan officers operate in a setting where work from home is hard to implement due to the nature of the tasks and technological constraints. The usual performance indicators appear to be mainly driven by external factors such as the nation-wide debt moratorium. Loan officers worked similar hours, but engaged less in planning activities and completed fewer of the usual tasks. Work perceptions and mental health of loan officers reflect these changes, and perceived stress was particularly high during the period of the debt moratorium.

Suggested Citation

  • Czura, Kristina & Englmaier, Florian & Ho, Hoa & Spantig, Lisa, 2022. "Microfinance Loan Officers Before and During Covid-19: Evidence from India," Rationality and Competition Discussion Paper Series 322, CRC TRR 190 Rationality and Competition.
    • Handle: RePEc:rco:dpaper:322
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    References listed on IDEAS

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    Cited by:

    1. Kristina Czura & Florian Englmaier & Hoa Ho & Lisa Spantig, 2023. "Employee Performance and Mental Well-Being: The Mitigating Effects of Transformational Leadership during Crisis," CESifo Working Paper Series 10433, CESifo.
    2. Villalba, Roberto & Venus, Terese E. & Sauer, Johannes, 2023. "The ecosystem approach to agricultural value chain finance: A framework for rural credit," World Development, Elsevier, vol. 164(C).
    3. Md Jamil, Abd Rahim & Law, Siong Hook & Khair-Afham, M.S. & Trinugroho, Irwan, 2024. "Financial inclusion and income inequality in developing countries: The role of aging populations," Research in International Business and Finance, Elsevier, vol. 67(PA).
    4. Goel Vishal, 2024. "An Empirical Assessment of Microfinance and its Associated Socio-Economic Development," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 34(2), pages 110-143, June.

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    More about this item

    Keywords

    microfinance; loan officers; covid-19; work organization; India;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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