New Delhi, December 9: Salary delays and business downturn accounted for the majority of all loan defaults, according to a recent survey, citing potential implications for lending and debt recovery in India facing economic slowdown.
Debt collection platform, Creditmate, which collected data from banks, NBFCs and digital lenders, surveyed about two lakh loan borrowers across Indian states, from the period between May 1 and November 30, 2019, across loan categories comprising two-wheeler loans, personal loans, SME loans, student loans, medical loans and digital loans.
“The default on payments were mainly caused by delay in salaries (36 per cent), business downturn (29 per cent), medical emergency (13 per cent), loss of job (12 per cent), and out of the city or country (10 per cent),” the survey noted.
The study, titled ‘India Delinquency Report’, also reveals that women were better and more efficient at loan repayments than men. While male accounted for accounted for the maximum late payments at 82 per cent, female borrowers were at 11 per cent, the survey noted.
It further said that about 79 per cent of the respondents used online modes of payments; of which, one in five payment transactions were done via UPI, while 21 per cent of defaulters made cash transactions