This article deals with the effect of the COVID-19 pandemic on the performance of a non-profit microfinance institution operating in the Nilgiris and Perambalur districts of Tamil Nadu in India. The primary focus of the paper is on the microfinance institute's financial performance in terms of outreach and portfolio quality before and after the coronavirus outbreak. The most worrisome factors that were encountered in due course of the study include a decline in loan portfolio and clientele, and

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... an increasing trend in portfolio at risk (PAR) percentage due to a surge in client overdues, outstanding loan amount and rise in number of delinquent clients. These negative impacts on performance were further investigated by establishing a connection to the clients' repayment ability. A survey was conducted among the women clients of the microfinance institution by enlisting 120 respondents, 60 from each district to identify the various constraints faced by them in loan repayment as a result of the government-imposed lockdown that affected their livelihood and curbed their source of income. Therefore, an attempt has been made to bring out the ground level realities that played an important role in disrupting the normal functioning of the microfinance institution during the pandemic outbreak. This will prove useful in setting guidelines for future crises of like nature to enable microfinance institutions to keep functioning efficiently without any drastic changes to their performance.